HSI, Nikkei, ASX lead gains as ‘FOMO trade’ kicks in – CNBC
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Asian markets tacked on gains on Thursday despite mostly poor economic data, although Chinese markets fell behind their region peers.
Chris Weston, chief market strategist at IG, said in an afternoon note, “Asian stocks have flown out of the gate and there almost feels like we could be seeing the start of FOMO (Fear of Missing Out) trading.”
“To many, losing money is only moderately worse than missing an opportunity and the flows today have been reminiscent of this phenomenon,” he explained.
The Japanese benchmark index, the Nikkei 225, closed up 360.44 points, or 2.28 percent, at 16,196.80, while across the Korean Strait, the Kospi finished up 24.90 points, or 1.32 percent, at 1,908.84. Hong Kong’s Hang Seng index added 438.51 points, or 2.32 percent, to 19,363.08.
Down Under, the S&P/ASX 200 gained 109.90 points, or 2.25 percent, to 4,992, moving closer to the psychologically key 5,000 level. The energy sector led the gains, up 5.3 percent, while financials gained 2.34 percent.
This followed the release of China’s inflation data for January. Consumer inflation quickened to 1.8 percent year-on-year, falling short of market expectations despite a boost from the Chinese New Year. A Reuters poll predicted the consumer price index would be at 1.9 percent, compared to 1.6 percent posted in December.
The producer price index fell 5.3 percent in January, following a 5.9 percent drop in December.
HSI, Nikkei, ASX lead gains as ‘FOMO trade’ kicks in – CNBC}