World shares mostly higher as virus fears ease

Bangkok: Stocks advanced Wednesday in Asia after another broad rally on Wall Street as investors wagered that the new variant of COVID- 19 won’t pose a big threat to the economy.

Shares rose in Paris, London, Tokyo and Shanghai but fell in Frankfurt as Germany’s parliament elected Olaf Scholz as the country’s ninth post-World War II chancellor, opening a new era for the EU’s largest economy after Angela Merkel’s 16-year tenure.

Scholz’s government is taking office with high hopes of modernising Germany and combating climate change but faces the immediate challenge of handling the toughest phase yet of the coronavirus pandemic.

Germany’s DAX fell 0.3% to 15,766.51, while the CAC 40 in Paris was flat at 7,065.10. Britain’s FTSE 100 picked up 0.4% to 7,365.25.

The future for the Dow industrials and the S&P 500 were both up 0.2%. Japan downgraded its growth estimate for the last quarter to minus 3.6% from an earlier reported contraction of 3.0%.

Economists are forecasting a rebound for the world’s third largest economy in the current quarter, thanks to recovering activity after corona caseloads plummeted. Parliament is expected to approve a record stimulus package of 56 trillion yen ($490 billion), including cash handouts and aid to ailing businesses, to lift the economy out of doldrums worsened by the pandemic.

Tokyo’s Nikkei 225 index gained 1.4% to 28,860.62 and the Shanghai Composite index climbed 1.2% to 3,637.57. Hong Kong’s Hang Seng edged less than 0.1% higher, to 23,996.87.

In Australia, the S&P/ ASX 200 jumped 1.3% to 7,405.40, while the Kospi in South Korea picked up 0.3% to 3,001.80.

On Tuesday, the S&P 500 rose 2.1% for its biggest gain since March, ending at 4,686.75. The Nasdaq climbed 3% to 15,686.92 and the Dow Jones Industrials rose 1.4% to 35,719.43.

Smaller company stocks did better than the broader market in a sign that investors are confident about economic growth. The Russell 2000 gained 2.3% to 2,253.79.

The rebound comes after the market posted two losing weeks, weighed down by concerns over the spread of the variant, mixed data on the job market and worries about inflation.

Comments Monday from Dr Anthony Fauci, the White House’s chief medical adviser, who said early indications suggest Omicron may be less dangerous than Delta. -(AP)