Healthier hopes of Chinese lockdown easing buoy Prudential and Burberry
HOPES for an end to China’s Covid disruption after a recent decline in cases prompted a flight back to Prudential, Burberry and other Asia-focused shares today.
Speculation growth-sapping lockdown restrictions might finally be eased came when tech hub city Shanghai reported a 51% fall in new cases for yesterday.
The country’s attempts at a zero-Covid policy and closure of the Hong Kong border have particularly hampered Prudential, which last year offloaded its US operation to focus on faster-growing savings and investment markets in Asia.
Having fallen by a quarter in 2022, Pru’s shares today lifted 5% or 42.6p to 925.6p amid the optimism from the world’s second largest economy.
Burberry, as worn by Lila and Kate Moss at the recent Met Gala (below) and whose recovery from the pandemic has been delayed by the recent spike in Covid cases in its key mainland China market, added 3% or 48.5p to 1530.5p.
Hopes for a revival in construction demand cheered commodity stocks as iron ore-focused Rio Tinto surged 4% and Glencore improved 3%. There were also gains of 2% for BP and Shell after the Brent Crude price reversed recent falls to stand at near $106 a barrel.
The FTSE 100 index improved more than 1%, or 87.12 points to 7330.34, as European markets showed further signs of stabilisation after the recent US-led sell-off. Other stocks moving sharply higher included British Airways owner IAG, up 3.7 pto126.7p.
The improved China outlook also meant shares in Aston Martin Lagonda rallied 3% as the FTSE 250 index improved 182.63 points to 19,567.59. Other second-tier stocks on the front foot included City broker TP ICAP, which lifted 4.9p to 118.6p after the return of market volatility helped quarterly revenues rise 15%.