Nikkei average

Asian Stocks Up, Amid Warnings About Stock Bubbles

Asia Pacific stocks were up Wednesday morning, over receding worries that global shares have rallied too far too fast during the past year. Investors’ focus is now on the U.S.’ $1.9 trillion stimulus package, with hope growing that it will stimulate the global economic recovery from COVID-19.

China’s Shanghai composite rose 1.05% by 10:12 PM ET (3:12 AM GMT) and the Shenzhen Component edged up 0.20%. China released February’s Caixin Purchasing power Index earlier in the day, which stood at 51.5 against January’s 52 figure.

Hong Kong’s Hang Seng Index jumped 1.64% and South Korea’s KOSPI gained 0.45%.

Japan’s Nikkei 225 was up 0.35%. Japan’s own services PMI for February was 46.3, higher than January’s 46.1 reading.

In Australia, the ASX 200 rose 0.80%. The country’s GDP grew 3.1% quarter on quarter in the fourth quarter of 2021, higher that the 2.5% growth in forecasts prepared by Investing.com but lower than the 3.3% growth recorded in the third quarter. The GDP shrank 1.1% year onn year, which was less than the forecast 1.8% contraction and the third quarter’s 3.7% drop.

Treasury yields retreated on Tuesday, amid comments from U.S. Federal Reserve Governor Lael Brainard that bond-market volatility could further delay any pullback in the Fed’s asset purchases.

Valuations have become a point of focus after hopes for a massive U.S stimulus package drove a run up in risk assets.

Investors also continued to digest a stark warning from Guo shuqing, chairman of the China Banking and Insurance Regulatory Commission.

“From a banking and insurance industry’s perspective, the first step is to reduce the high leverage within the financial system,” Guo said during a Tuesday briefing in Beijing.

Mainland Chinese stocks were up by the early morning. The Shanghai Composite was up by 1.28% to 3506.19. Hong Kong’s Hang Seng Index was up about 1.31% to 29,085.50.

Japan’s benchmark Nikkei average Nikkei 225 is trading up 0.51 per cent at 29,559.17 on Wednesday, while the broader TOPIX  100 rose 0.49  per cent to 1,243.05. South Korea’s Kospi was up by 1.29% to 3082.99.

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