Asian stocks have strengthened further, while US ones may face a larger correction

Shanghai, Hong Kong, Tokyo and Seoul announce the end of Wednesday’s stock market session in stronger territory. In contrast, Wall Street saw the actual stagnation of the Dow Jones index and the weakening of both the S&P 500 and the technology Nasdaq.

The index, which includes the main market on the Shanghai Stock Exchange, surpassed the 13-year high, strengthening by more than two percent on Wednesday. The strengthening is due to positive data on inflation. Industrial producer prices rose by 0.3 percent year on year in January, which is the highest rate since May 2019.

The Hong Kong Stock Exchange also benefited from this development, strengthening by less than two percent. Shares in Tokyo strengthened by 0.19 percent as the outlook for the automotive industry improved. The Seoul Stock Exchange KOSPI added half a percent after a South Korean regulator approved a coronavirus vaccine and the use of a covid drug from the workshop of the pharmaceutical company Eli Lilly.

In contrast, stocks in New York virtually stagnated as the Dow Jones strengthened slightly and the S&P 500 and Nasdaq weakened slightly. Doubts are beginning to emerge among investors on the US stock exchange that the value of shares will continue to grow this year. So there is a possibility of a greater correction of American stocks at stake. Others speak of the “bumpy road” that Wall Street shares will take this year.


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