Asian stock markets followed Wall Street higher Monday after U.S. hiring improved and China and Australia tightened anti-virus controls that threaten to weigh on an economic recovery
On Friday, Wall Street ended at a new high after a government report showed U.S. in July was stronger than forecast.
Investors have been encouraged by higher U.S. corporate profits and the global spread of coronavirus vaccinations. But the delta variant’s spread has prompted some governments to reimpose controls on business and travel.
China has canceled airline flights as it tries to stop a rash of outbreaks. Australia’s two most populous states have told the public to stay home except to go to work or for a handful of other reasons.
“The right question for everyone to be asking, including financial market participants, is when lockdowns will come to other economies,” said Carl B. Weinberg of High Frequency Economics in a report. “This is central bankers’ worst nightmare coming true.”
The Shanghai Composite Index gained 1.1% to 3,496.60 after Chinese exports rose 18.9% in July over a year earlier. The country’s global trade surplus was $56.6 billion.
Hong Kong’s Hang Seng gained 0.8% to 26,386.21. The Kospi in Seoul fell 0.3% to 3,261.57 and the S&P-ASX 200 in Sydney gained 0.1% to 7,546.90.
