TOKYO — Asian shares were mostly higher on Tuesday with hopes growing for a global economic rebound despite surging coronavirus cases in many places.
China reported its exports rose nearly 31% in March, in line with expectations but weaker than the 60% growth seen in the first two months of the year.
The rising trade activity reflects higher demand in overseas markets even as some countries reimpose precautions to counter rising numbers of new infections.
Japan’s benchmark Nikkei 225
NIK,
+0.94%
gained 1.1% in morning trading. South Korea’s Kospi
180721,
+0.93%
gained 1% and Australia’s S&P/ASX 200
XJO,
-0.01%
inched up 0.1%. Hong Kong’s Hang Seng
HSI,
+0.96%
rose 0.9%, while the Shanghai Composite
SHCOMP,
-0.01%
was little changed. Stocks fell in Indonesia
JAKIDX,
-0.72%,
but advanced in Singapore
STI,
+0.21%
and Taiwan
Y9999,
+0.30%.
Robert Carnell, Regional Head of Research Asia-Pacific at ING, expects trading in the region to be tentative as investors await data that will help assess the recovery from pandemic damage.
Apart from the Chinese trade data, “Asian markets, like others, will be on tenterhooks pending the release of important March U.S. inflation figures later today,” he said in a report.
Earnings season is approaching and corporate results may indicate the direction of future growth as nations gradually emerge from the damage set off by the pandemic.
Worries remain about recent surges in COVID-19 cases, including Brazil and Michigan state in the U.S. Earlier this week, Japan, which trails the world in the vaccine rollout, called for government-backed measures to curb the recent surge in the sickness in some areas.
In Thailand, authorities are warning of a potential explosion in cases after many new infections were found among people who frequent clubs and other entertainment venues.
On Wall Street, indexes gave up some of their recent gains as technology, communication and energy stocks weighed on the market.
Bond yields inched higher after easing most of last week. Investors have been focusing on the economic recovery as well as the risks higher inflation poses to consumers and companies.
Monday’s pullback snapped a three-day winning streak for the benchmark S&P 500, which closed out last week with its third straight weekly gain.
“It’s this back and forth as the market tries to figure out how strong the economy is going to be and how long its going to last,” said Tom Martin, senior portfolio manager with Globalt Investments.
The S&P 500
SPX,
-0.02%
slipped 0.81 points to 4,127.99. The Dow Jones Industrial Average
DJIA,
-0.16%
fell 0.2% to 33,745.40. The tech-heavy Nasdaq composite
COMP,
-0.36%
lost 0.4%, to 13,850. The S&P 500 and Dow each set record highs Friday.
In energy trading, benchmark U.S. crude
CLK21,
+0.42%
added 32 cents to $60.02 a barrel in electronic trading on the New York Mercantile Exchange. It gained 38 cents on Monday to $50.70 per barrel. Brent crude
BRNM21,
+0.43%,
the international standard, gained 37 cents to $63.65 a barrel.
In currency trading, the U.S. dollar
USDJPY,
+0.30%
inched up to 109.68 Japanese yen from 109.40 yen late Monday.
