Asian shares recover; short selling presses
Asian share markets made a strong rebound on Friday. However, they are still on course for their biggest decline in months as a liquidity squeeze in China and Wall Street’s short selling dampened investors’ sentiment.
MSCI’s broadest index of Asia-Pacific shares outside Japan recorded a 0.9% increase. While the index jumped, it is still heading for its sharpest drop since September. Japan’s Nikkei is currently on track for its first weekly decline of 2021, with a 1.5% plunge on record since last Friday.
The declines could be attributed to a series of roadblocks that coronavirus vaccines had encountered, with weak global economic data also restricting the markets. Moreover, China’s central bank injected 100 billion yuan into the financial system after a week of liquidity-driven concerns.