Asian stocks mixed in quiet end of year trading

BANGKOK: Asian shares were mixed on Monday at the outset of the last trading week of the year as countries grappled with the spread of the omicron coronavirus variant.

Benchmarks rose in Shanghai and Bangkok on Monday but fell in Tokyo and Seoul. Many global markets are closed for holidays.

Comments by China’s central bank, or People’s Bank of China, about support for the economy, highlighted differences instance among major economies in balancing the need to support economic recoveries from the pandemic while keeping inflation in check.

The Federal Reserve is among a handful of central banks that have already begun cutting interest rates or otherwise cutting back on the extra support they provided when the pandemic first slammed world economies in early 2020.

“The divergences in global monetary policy are set for a sharper turn heading into the new year, especially after the PBOC’s announcement that it will remain ‘proactive’ in its use of monetary policy tools,” Mizuho Bank said in a commentary, according to The Association Press (AP).

“With Omicron cases rising across China, pushing regions into lockdowns and tighter social restrictions, a case for additional growth support is increasingly clearer,” it said.

The Shanghai Composite index rose 0.2 per cent to 3,623.58, while Thailand’s SET was nearly unchanged.

Tokyo’s Nikkei 225 index lost 0.2 per cent to 28,722.87 and the Kospi in Seoul declined 0.3 per cent to 3,004.92. India’s Sensex slipped 0.3 per cent to 56,935.80.

Markets were closed in Hong Kong, Malaysia and Australia.

That followed a mixed day of quiet trading on Friday when many markets around the world were closed or ending early in observance of Christmas.

Last week, the S&P 500 set another record as fears ebbed about the potential impact of omicron outbreaks. However, much is still uncertain about the variant, which is spreading extremely quickly, leading to a return to pandemic restrictions in some places.-BNA