Markets mostly rose Thursday in Asia as
investors tentatively returned to buying after recent losses, with Chinese
property firms enjoying a much-needed lift on fresh easing measures by the
country’s central bank.

Signs that Beijing was on a new monetary easing course also provided some
crucial support to the tech giants who have been hammered in recent months as
they were caught in the clutches of a wide-ranging, private-sector clampdown.

The People’s Bank of China on Thursday lowered a key bank lending rate for
the second time in as many months, days after slashing its policy rate for
the first time since the pandemic struck.

The move was the latest aimed at boosting the world’s number two economy,
which has been crippled by lockdowns to stem fresh Covid outbreaks as well as
a sharp slowdown in the vast property sector, a key driver of growth.

Chinese property firms will be among the biggest winners as the easing
improves their chances of accessing much-needed funds to repay monumental
debts that have threatened their future and raised concerns of contagion in
the broader economy.

However, the market mood remains grounded by concerns about the US Federal
Reserve’s monetary policy plans as it battles soaring inflation, which has
been stoked by a cocktail of surging demand, supply chain snarls, rising
wages and a spike in energy prices.

Speculation is now growing that the bank will have to lift interest rates
four times or more this year.

Some analysts are tipping a 50 basis-point hike in March, the first such
move since 2000, while the bank has also said it plans to offload the bond
holdings on its books that have helped keep costs down.

The inevitable end of the era of ultra-cheap cash — which helped fuel a
near two-year equity rally and economic rebound — has weighed on global
markets for months.

While some have managed to eke out record or multi-year highs, analysts
warn that the next few months could see some gyrations.

One of the main losers has been the Nasdaq on Wall Street, which on
Wednesday fell into a correction — a decline of greater than 10 percent from
its most recent peak — as tech giants are more susceptible to higher
borrowing costs.

The Dow and S&P 500 have also suffered.

“The market is now facing uncertainty regarding both rate hikes and the
balance sheet,” said Steven Englander at Standard Chartered Bank.

“We therefore see scope for the recent volatility to continue near term”.

Still, Asia was faring much better.

Hong Kong gained 1.9 percent thanks to a rally in tech giants including
Alibaba, Meituan, Tencent and JD.com, while property firms also enjoyed
healthy gains.

China Evergrande, which has been teetering for months, was up more than
three percent, while Sunac added 10 percent and Country Garden gained seven
percent.

Shanghai was also in positive territory, gaining 0.4 percent in morning
trade.

“The new cycle of easing has come as expected,” Xu Chi, at Zhongtai
Securities, said. “We should remain positive on the stock market” as risk
appetite is set to improve.

Tokyo, Singapore, Seoul, Bangkok and Jakarta also rose but Sydney,
Wellington and Taipei edged down.

Oil markets dipped after a strong run-up this week on the back of
expectations for improved demand as economies reopen and as unrest in the
crude-rich Middle East sparks supply concerns.

The International Energy Agency lifted its forecast for 2022 consumption
to 99.7 million barrels per day, above the pre-Covid level.

Both main contracts are also homing in on the $90 mark, having broken to
seven-year highs earlier in the week, while some commentators are predicting
Brent could bust past $100 next year.