Asian Tourism Stocks Rise
As global markets waver, the rise of Asian tourism stocks stands in contrast to the decline of European markets.
Asian tourism and consumer stocks rose sharply on optimism that more Chinese will travel as pandemic-related restrictions are eased.
Shares of beauty company Sa Sa International Holdings Ltd. saw a 6.42% increase due to Hong Kong’s lengthy face mask mandate. Casino operator MGM China Holdings Ltd. and Wharf Real Estate Investment Co., a mall-related company, both experienced a 3.2% rise.
Oriental Land Co., the operator of the Tokyo Disney Resort, saw the greatest increase on Japan’s Topix index with a 3.52% rise. Shiseido Co., a cosmetics manufacturer, also experienced a notable 2.2% jump after Japan declared that it would reduce COVID testing mandates for individuals traveling to China from March 1st.
Hana Tour Service Inc. of South Korea surged 6.82%, the greatest increase since September 6. Bloomberry Resorts Corp., a casino operator that relies largely on Chinese customers, increased 5.43%, while Leisure & Resorts World Corp. rose 3.74%.
China’s reopening continues to help Southeast Asian economies, with Thailand getting the biggest boost to its income from visitors.
Thailand had 2.12 million tourists in January, supported by a travel boom and China’s opening. January arrivals were up more than 1,501% year-over-year.
European markets dip as major stocks fall
European markets opened lower on Tuesday, ending Monday’s positive trend.
The pan-European Stoxx 600 index had a solid performance in yesterday’s session, rising 1.12% after its lowest week of the year. However, fears of the scale of a central bank rate hike appeared to have returned earlier Tuesday, with the index down 0.44% shortly after opening.
Most sectors were down in early trade, with chemicals, the leading loser, down 0.76%.
The FTSE index and the pound were given attention today after the British Prime Minister concluded a trade agreement with the EU on Monday, which is meant to address troubles stemming from the Northern Ireland Protocol. Sterling climbed 0.92% against the U.S. dollar, reaching a peak of $1.2052.
Major U.S. indexes boosted markets on the last trading day of February, reversing the month‘s losses. U.S. stocks rose on Monday as traders tried to regain ground after Wall Street’s worst week of the year. All three major US indexes closed increase, with the Nasdaq Composite leading the way.
Asia-Pacific markets were mostly higher as investors looked into key regional economic data.
The Finnish economy fell into a technical recession in the second half of last year. The country’s gross domestic product decreased by 0.62% in October-December, after a 0.32% decrease in July-September.
