Asian Stocks Open Mixed in Wary Trading Session

Stocks were mixed in Asia on Monday, reflecting cautious trade and low liquidity as many exchanges were closed for holidays.

Hong Kong’s Hang Seng index dropped 0.44% as of 9.28 A.M. (Thai time). The Shanghai Composite gained 0.71%.

Australia’s S&P/ASX 200 opened 0.63% lower at 7,107.7 and South Korea’s Kospi slightly lost 0.04%.

Meanwhile, the Nikkei 225 in Japan gained 0.39%.

Concerns about China’s capacity to cope after scrapping its Covid Zero policy hampered appetite for risk-taking.

Amid a new wave of infections, China’s National Health Commission announced that it would discontinue reporting daily coronavirus cases, making it more difficult for investors to gauge the economic impact.

Figures released on Friday showed Japan’s key inflation index accelerating to its highest rate since 1981, potentially supporting further bets on Bank of Japan shift.

The yen rose slightly against the dollar as traders considered the possibility of the BOJ boosting interest rates next year following last week’s unexpected revision to its 10-year yield target.

Meanwhile, Wall Street concluded Friday’s session with gains as investors digested data suggesting that US inflation is continuing to fall and that the Federal Reserve’s rate hikes are working.

This helped Asian markets, but the S&P 500 and the tech-heavy Nasdaq 100 still lost for the third week in a row.