Stocks across the Asia Pacific were mixed on Monday, as markets reacted to the news connected with the economy. For example, Hong Kong’s Hang Seng index saw gains on May 11. Its index added 1.72%.
Moreover, Japan’s Nikkei 225 rose 1.41% in afternoon trade. At the same time, another Japanese stock index Topix gained 1.64%.
However, mainland Chinese stocks were mixed on Monday. The Shanghai Composite added 0.13%. Meanwhile, the Shenzhen Composite slightly decreased.
Moreover, South Korea’s Kospi index dropped 0.27%.
Hopefully, Australia’s S&P/ASX 200 gained 1.48%.
Markets and coronavirus pandemic
Importantly, investors are closely monitoring the situation amid hopes of global economies reopening as well as removing some of the rules connected with social distancing. Hopefully, such decisions help to boost the markets.
Moreover, the Prime Minister of the United Kingdom Boris Johnson outlined a “conditional plan” over the weekend. Notably, from Monday people who are not able to work from home can go back to work. However, still, it is better to avoid public transport.
However, it is too early to say that pandemic is over as can be seen from the example of South Korea. On Sunday, the country warned of a potential second wave of infections. This news came after the country, which successfully contained the outbreak, eased restrictions.
Last week, the data regarding the U.S. labor marker became available to the public. Last month, 20.5 million Americans lost their jobs. Moreover, due to the coronavirus pandemic, millions of Americans applied for unemployment benefits. Interestingly, before the pandemic unemployment rate was low. However, the situation changed for the worse as millions of people lost jobs due to the problems related to coronavirus pandemic.
The government of the United Kingdom, as well as other countries, are trying to reopen their economies with minimal impact on public health. Thanks to coordinated efforts it is possible to minimize the risk factors. Markets will also benefit from such decisions.