- Stocks were mixed in choppy trading as investors focused on the reopening of markets in mainland China, the drop in Adani Group assets, and upcoming interest rate decisions in the United States and Europe.
- As onshore exchanges reopened after the week-long Lunar New Year holiday, the Shanghai Shenzhen CSI 300 Index rose around 1%, putting it on track to close more than 20% above its October low and in a bull market.
- Japanese and Australian equities fluctuated between gains and losses, while benchmark indexes in Hong Kong and Seoul fell sharply.
- There has been clear optimism in bets that the Federal Reserve will slow the pace of rate hikes later this week, as well as in Nasdaq's 1% gain on Friday when traders ignored disappointing outlooks from some of the world's largest technology companies.
- The Fed's broader outlook keeps the dollar under pressure, allowing Asian markets to outperform the US this year. China's shift away from Covid Zero policies is also boosting the region, with indications over the last week that infections do not appear to have gotten out of hand during the holiday season, while consumption figures have bolstered bets on economic recovery.
