Strong rally in the Tokyo stock market – E24

Investors in Asia Pacific are sending stocks higher in anticipation of US Central Bank Chairman Jerome Powell’s interest rate decision.

There has been optimism in many of the world’s stock exchanges in recent days, both here at home and on Wall Street, after several days marked by bank failures and turmoil.

The positive mood also carries over to the Asian markets, where the focus is now on the US central bank.

The Tokyo Stock Exchange and the Hong Kong Stock Exchange are competing to lead a better stock market recovery in the region.

This is what it looks like on the most important stock exchanges in Asia Pacific at 05.50 Norwegian time:

• The Nikkei 225 index in Tokyo rose 2.13 percent
• Hong Kong’s Hang Seng rose 1.92%
• The Shanghai Composite Index rose 0.25 percent
• Seoul’s Kospi Index rose 0.95 percent
• FTSE Straits Times Index Singapore rose 1.43%
• The ASX 200 Index rose in Sydney by 0.93 percent

He approves the mRNA vaccine

In Hong Kong, the Hang Seng Index is pulled by healthcare stocks, among others.

Just after 05:00 Norwegian time, Bloomberg reported that China had approved its first mRNA vaccine against the coronavirus. It is made by a Chinese company, CSPC Pharmaceutical Group, and is listed on the Hong Kong Stock Exchange.

The stock rose 2.33 percent.

According to the exchange’s announcement, the company’s vaccine has been approved for emergency use.

The decision comes long after mRNA vaccines spread to the rest of the world and months after China lifted its coronavirus restrictions.

Bloomberg writes that lower vaccination rates among people in high-risk groups and the use of less effective vaccines will likely make China’s coronavirus wave more deadly.

The approval of this vaccine could do something about it, while also strengthening the country’s independence from other countries, when they can use “home-made” vaccines to immunize the population.

– All central banks are in doubt now

Investors around the world are now awaiting the US interest rate decision this evening, Norwegian time.

– All central banks are now in doubt, says chief economist Harald Magnus Andreessen at Sparebank 1 Markets to E24.

He points to the recent banking drama, which began with the collapse of the Silicon Valley Bank (SVB), which has caused problems for central bankers.

Because the question, according to Magnussen, is who will do the “dirty job” and calm the US economy. Is it the central bank or the banks?

There is no fear today of a bad financial crisis. There is only doubt as to how much banks contribute to the cooling. As of today, we have no indication that things will get worse, but the central bank does Known No, says the chief economist.

according to CME Group The market is pricing in about an 80 percent chance that Central Bank Chairman Jerome Powell will raise interest rates by 0.25 percentage point, against a 20 percent chance for an unchanged interest rate.

Magnussen also believes that the central bank governor will announce an interest rate increase of 0.25 percentage points on Wednesday night, Norwegian time.