Asian equities were subdued on Wednesday, while the dollar held firm, with investors looking for direction after China took further steps towards reopening its COVID-battered economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) slid 0.13%, snapping a two-day winning streak and looking set to end the last month of the year in the red.
China stocks (.SSEC) were set to open slightly lower, while the Hong Kong stock market (.HSI) opened 1% higher, encouraged by China’s Monday announcement it would stop requiring inbound travellers to go into quarantine starting from Jan. 8.
A faster than anticipated peak of infection has stoked expectations that a quick economic recovery is on the cards.
Wall Street ended lower overnight as U.S. Treasury yields pressured interest-rate-sensitive growth shares.