China shares jump after holiday; other markets plunge as investors take profits
Chinese shares were seen upbeat on Thursday, recording their first session of gains after the country celebrated the Lunar New Year. Renewed optimism for an increase in global growth heavily fueled enthusiasm, but other markets across Asia were hurt by investors’ withdrawal from shares.
MSCI’s broadest index of Asia-Pacific shares outside Japan recorded a 0.15% decline. While there was a drop, the index still placed close to its all-time high record. Chinese shares advanced 0.77% as Australian shares inched 0.05% lower. Japan’s Nikkei, on the other hand, traded flatly.
Investors’ optimism could be attributed to strong retail figures in the United States, the Federal Reserve’s dovish tone, and stimulus hopes. However, some analysts remain cautious as new strains of coronavirus continue to emerge.