Asian markets rise as HK returns with rally

Asian markets rise as HK returns with rally

AFP / Hong Kong

Asian markets rose yesterday as a surge in Hong Kong on its first day back from a break helped overcome a sharp drop on Wall Street, while forecast-beating earnings from Amazon added to the positive mood ahead of the weekend.

However, a surprisingly hawkish tilt from the European Central Bank added fuel to fears about the removal of pandemic-era stimulus.

All eyes are now on the release later in the day of US jobs data, which is often used as a guide for possible Federal Reserve policy decisions, before next week’s eagerly awaited inflation report.

With the jobs market well on the recovery track as the economy reopens, the central bank has said it feels it has enough room to begin raising interest rates from March to fight soaring inflation, which is sitting at a four-decade high.

But while the outlook for growth remains upbeat, investors are having to recalibrate to adjust to the end of the era of cheap cash, which has helped fan a two-year rally that has pushed markets to record or multi-year highs.

Several Fed officials have come out recently to insist they will not put the recovery at risk in their tightening campaign, though