On Monday, the MSCI’s broadest index of Asia-Pacific shares outside Japan rebounded to rise 0.7% after earlier losses, driven by a late rebound in Asian and European shares. The market recovery was fueled by various factors, including positive economic data and easing concerns over inflation. In this article, we will delve deeper into the market trends and factors driving the recovery of Asia-Pacific shares.
Factors driving the market recovery:
One of the primary drivers of the market recovery is the positive economic data that has been released in recent weeks. China, the world’s second-largest economy, recorded a growth rate of 18.3% in the first quarter of 2021, which exceeded market expectations. Additionally, the US economy added 266,000 jobs in April, surpassing expectations of 1 million job losses. These positive economic indicators have boosted investor confidence and provided a much-needed stimulus to the markets.
Another significant factor contributing to the market recovery is the easing concerns over inflation. Inflation concerns had been on the rise in recent months due to the unprecedented stimulus measures adopted by governments worldwide to combat the economic impact of the COVID-19 pandemic. However, recent data has shown that inflation has remained relatively stable, alleviating investor concerns and driving market recovery.
Rebound in European markets:
The rebound in European markets also played a crucial role in the recovery of Asia-Pacific shares. European markets had suffered losses in the early part of Monday’s trading session, but they rebounded towards the end of the day, with the Euro Stoxx 50 rising 0.2%. The European Central Bank’s (ECB) commitment to maintaining its ultra-loose monetary policy has provided support to European markets, which in turn has contributed to the global market recovery.
Asian markets also received a boost from positive earnings reports from companies such as Alibaba, Tencent, and Sony. These companies reported better-than-expected earnings, boosting investor confidence and driving the recovery of Asia-Pacific shares.
The recovery of Asia-Pacific shares is a positive sign for the global economy and a testament to the resilience of the markets. While there are still concerns over inflation and the ongoing impact of the COVID-19 pandemic, positive economic data and central bank support are providing the much-needed stimulus to the markets. As we move forward, it will be interesting to see how the markets continue to evolve and adapt to the changing economic landscape.
In conclusion, the Asia-Pacific shares are showing signs of recovery, driven by positive economic data, easing inflation concerns, and rebounding European markets. The recovery of the markets is a positive sign for the global economy, and it will be interesting to see how the markets continue to evolve in the coming months.