Business & Investment

Asian stocks rise as Archegos’s fear of fallout eases, but raises fears of inflation

© Reuters.

Gina Lee – Asia Pacific stocks rose most on Tuesday morning as investors continue to monitor further damage from. However, the rapid pace of both the US economic recovery from COVID-19 and the deployment of vaccines has rekindled inflation concerns.

Japan rose 0.05% by 11:24 pm (3:24 GMT). Nomura Holdings (T :), who allegedly counts Arquegos’ Bill Fan as a client, said it was too early to estimate the impact of losses associated with him.

South Korea rose 1.09%, but Australia fell 0.58%.

Hong Kong surged 1.17% as the city of Hong Kong is preparing to relax some of its more stringent restrictions from April 1st. Meanwhile, a unanimous vote by the Standing Committee of the National People’s Congress has reduced the number of seats directly elected by the Hong Kong Legislative Council. A review body will be set up to determine who can run for election.

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China rose 0.56% and rose 1.06%. Investors are looking at the Purchasing Managers Index (PMI), which will be released Wednesday, for further clues about China’s economic recovery.

Some traders have demanded higher rates to hedge the potential loss of bank debt involved in Nomura (T :) and the story of Arquegos. Credit Suisse Group (NYSE :) So far, the company said in a statement that “all plans were being discussed.”

However, the credit market continued to calm as the Asian session progressed on Tuesday.

Shana Sissel, Chief Investment Officer of Spotlight Asset Group, told Bloomberg: Sisel is skeptical of the possibility of a wider market fallout from Arquegos, “this has a systematic and massive impact on the global market beyond some of the positions they held. It’s hard to believe. ”

Instead, the focus is on the progress of the US economic recovery from COVID-19, and US President Joe Biden will announce a further infrastructure-focused stimulus program on Wednesday.

In terms of the COVID-19 vaccine, Biden also announced that 90% of adults are eligible for vaccination in April. A Pfizer Inc. (NYSE :) and Modana Inc., according to US government researchers. A real-world study of (NASDAQ :) also showed that the dose effectively prevented coronavirus infection.

However, the rapid pace of vaccine deployment and the prospect of further stimulus in the United States has revived inflation concerns among some investors.

Estee Dweck, Head of Global Market Strategy, Natixis Investment Manager, said:

But she added that the rise in yields “has not led to an outflow from stocks.” Basic support for risk assets is provided. ”

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Asian stocks rise as Archegos’s fear of fallout eases, but raises fears of inflation Asian stocks rise as Archegos’s fear of fallout eases, but raises fears of inflation

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