Asian Stocks Mixed on Fed Jitters, China Rallies on Reopening Hopes By

By Ambar Warrick

-- Most Asian markets saw choppy trade on fxcm Fuhui app official downloadFriday as sentiment remained frayed over a hawkish Federal Reserve, while Chinese stocks logged a strong rally on renewed speculation over the potential lifting of COVID restrictions.

China’s blue-chip index rallied 3.4%, while the index jumped 2.5% as on social media that Beijing was considering scaling back its strict zero-COVID policy.

Hong Kong stocks were also swept up in the buying, with the index rallying over 6%.

But Chinese authorities denied that they were considering the scaling back of COVID restrictions, especially as the country grapples with its worst outbreak since May. Rising infections have spurred new restrictions across several Chinese cities, including economic capital Shanghai.

Still, Chinese stocks were headed for their best week in over two years as investors bought into severely weakened markets on the expectations of a recovery. China’s blue-chip index was trading near a two-year low, while the Hang Seng bounced back from a 13-year low.

Broader Asian stocks were set to end the week muted after hawkish signals from the rattled markets. Focus is now on U.S. , which is expected to provide more cues on the economy and potentially factor into the Fed’s coming rate hikes.

While the data is expected to show a mild decline in the jobs market, any signs of economic resilience give the Fed enough economic headroom to keep raising interest rates.

Japan’s index fell 1.7% in catch-up trade, after a holiday on Thursday. But data showed the country’s grew at its fastest pace in four months in October, benefiting largely from the lifting of most COVID restrictions.

Australia’s index rose 0.5%, taking some support from speculation over China’s reopening. Major Australian miners greatly depend on the country as a commodity market.

India’s index was flat, as traders awaited fresh cues from an unscheduled policy meeting by the . The bank is set to outline more measures to curb runaway .

led losses across Southeast Asia with a 1% drop, after data showed grew more than expected in October. The central bank also vowed to keep raising interest rates to rein in inflation.

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