© Reuters. By Gina Lee
Investing.com – Asian stocks rose Monday morning, rising to levels not seen in nearly four months, even amid rising COVID-19 figures.
Investors rely on cheap liquidity and expect more stimulus measures from governments to boost their economies. But the number of COVID-19 cases shows no signs of slowing, with more than 11.4 million global cases as of July 6, according to data from Johns Hopkins University.
The World Health Organization reported the highest number of cases over a 24-hour period over the weekend, and many US states reported an increase in cases over the long holiday weekend.
China rose 3.68% at 10:55 PM ET (3:55 AM GMT) and rose 2.40%.
Hong Kong rose 2.34%.
Japan won 1.44%, with Yuriko Koike winning around 60% of the votes for a second term as governor of Tokyo on Monday.
South Korea rose 1.46% and 0.14% up.
Nomura analysts said in a note: “We believe there is a case for increasing the tactical allocation of Asian stocks in the context of global equity portfolios … we see a number of catalysts that could drive the superior performance of stocks. Asian ex-Japan stocks over US equities in the near term: Best COVID-19 trends and mobility data in economies / markets dominating the ex-Japan Asia index should translate into an economic recovery fastest versus the United States. “
But other investors remained wary of the number of US cases approaching 3 million and the tensions between the United States and China.
“It is very clear that the United States never had the COVID outbreak under control like other countries did. By reopening the economy too soon, we have seen a terrifying increase in the rate of new cases. Therefore, markets will have to climb a wall of concern in July, as economic activity is likely to soften from the V-shaped recovery seen in recent months. We should also remember that relations between the United States and China are deteriorating markedly, “Robert Rennie, head of financial market strategy at Westpac, told Reuters.
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