Shares rise, the dollar is down in the worst week since September as Omicron fears falling Reuters

Author: Alun John

HONG KONG (Reuters) – Most Asian stock markets rose on Friday and the dollar backed, a sign that the Omicron variant will not significantly impede global economic growth.

The greenback went from worst week to September, and other risk-averse assets from bitcoin to the Australian dollar held back recent gains, raising concerns about the seriousness of the new COVID-19 variant.

The broader MSCI index for Asia-Pacific equities outside of Japan rose 0.2% to 0.1% after a record close. [.N]

Some markets, however, fell into more drastic measures to sustain Omicron’s expansion. China’s blue chips fell 0.32% a day in the northwestern city of Xi’an after rising infections caused a blockade of its 13 million population.

“It seems that neither tapering nor the Omicron variant will have a major impact on the economy, globally, money is pouring into stocks,” said Steven Leung, executive director of institutional sales at UOB Kay Hian in Hong Kong.

The U.S. Federal Reserve said last week that it would accelerate the reduction in the massive bond buying program and pave the way for a three-year interest rate hike in 2022, but that did not spoil the market in 2013 when the Fed reduced quantitative easing after the financial crisis. .

Meanwhile, economists believe that the COVID-19 strain of Omicron is unlikely to be avoided in the second consecutive year of upward trend, even as they – and more importantly, epidemiologists and public health experts – try to assess the impact of the variant on health services. reduced severity, but increased transmissibility.

US stock and Treasury markets closed for the holidays on Friday, but the S&P 500 and Nasdaq futures gained 0.66% and 0.8%, respectively, during Asian hours.

The Pan region jumped 1.35%.

DOLLAR BEGUNA

In the currency markets, the greenback was 96,067, which measured slightly against its six major counterparts, which changed little that day, but fell 0.6% since Friday’s close – the worst week since early September.

The dollar has lost its place in most currencies, with the exception of the yen, another safe haven. The Japanese currency was at 114.38 per dollar on Friday and 82.75 against the Australian dollar, almost at the same level as the news of the Omicron variant first appeared at the end of November.

It was at $ 0.7236 since its five-week high of $ 0.7252 last night, reaching a high of $ 1.3437 a month on Thursday, the last at $ 1.341, up 1.4% on the week.

“A cautious optimism that is more serious than the Omicron Delta is supporting risky assets,” CBA’s FX analysts said in a daily statement.

The benchmark yield was 1.4926 at the close on Thursday, hitting a session high of more than 1.5010 a week high as investors sold government bonds as part of the risk mood. [UST/]

In line with the same trend, bitcoin rose 4.5% on Thursday, had its best day in almost two weeks and held on to gains on Friday in Asia, selling more than $ 51,000.

The world’s largest cryptocurrency trading patterns are gradually aligning themselves with traditional risk-taking and risk-taking movements in traditional markets as the influence of institutional investors grows.

Oil prices fell on Friday, with holiday trade rising by three days. futures fell 0.47% to $ 76.49 a barrel. US markets are closed. [O/R]

The weak dollar helped continue to grow by 0.6% a day, to $ 1.15% per ounce of $ 1.15% per week. [GOL/]