Asia-Pacific markets rise as China reopens borders with Hong Kong

HONG KONG, Jan 9, 2023, CNBC. Asia-Pacific markets traded higher as Hong Kong and mainland China resumed quarantine-free travel over the weekend, signaling the end of zero-Covid policy which kept borders effectively closed for nearly three years, CNBC reported.

South Korea’s Kospi rose 2.63% to end its session at 2,350.19, leading gains in the region and the Kosdaq gained 1.78% to 701.21.

Hong Kong’s Hang Seng index gained 1.77% in its final hour of trade on the first day of trade following the reopening. Technology stocks led gains alongside travel and consumer names. In mainland, the Shanghai Composite rose 0.58% to 3,176.08 and the Shenzhen Component rose 0.62% to 11,450.15.

The S&P/ASX 200 gained 0.6% to close at 7,151.3 as investors digested the Australia’s buildings approvals print that came in significantly lower than expected. Japan’s markets were closed to observe Coming of Age Day, a public holiday.

In the U.S., major indexes ended last week with their first rally of the new trading year. Nonfarm payrolls for December came in slightly higher than expected, while wages rose at a slower pace than expected. ISM’s non-manufacturing purchasing managers’ index showed a contraction in the services sector — adding to hopes that the Federal Reserve’s rate hikes are making progress in taming inflation.

CNBC’s Carmen Reinicke, Sarah Min and Alex Harring contributed to this report