Indian stock benchmarks rose higher on Tuesday, halting a three-session loss streak, even as Asian stocks trailed on Tuesday as COVID-19 resurfaced in China raised concerns that Beijing could reintroduce tight pandemic controls and that those restrictions could could further disrupt supply chains.
The BSE Sensex index rose 20.6 points to 61,165.44 and the broader NSE Nifty index rose 0.01 percent.
But China’s benchmark index fell 0.13 percent in early trading, while the broader Asia-Pacific index ex-Japan lost 0.25 percent. The reference index for Hong Kong fell by 1.31 percent.
“China’s Covid situation is really front and center for trading in Asia,” Redmond Wong, market strategist for Greater China at Saxo Markets in Hong Kong, told Reuters.
However, the dollar pulled back from significant overnight gains as oil paused after Monday’s decline.
“Firmness in SGX Nifty and select Asian indices may support local market sentiment during early Tuesday trades despite Wall Street’s overnight sluggishness,” said Prashanth Tapse, senior vice president for research at Mehta Equities.
“Two areas of concern are rising interest rates that show no signs of cooling down and its ripple effect on global economic growth. With China extending lockdowns, demand for oil and other products could take a hit, resulting in a recession scenario in major global economies ,” he added.
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