Asia stocks join the wall Streets Santa Claus rally, covid risks abating

Asian stock markets have joined Wall Streets recovery this week into the 11th hour ahead of the Christmas holidays as traders cheer the positive sentiment around the omicron variant of the COVID-19 virus.  The S&P 500 was closing at a new record.

In Japan, the Nikkei 225 opened and stays higher on the day so far. It is trading at 28,282 at the time of writing on news that US authorities approved Pfizer's (PFE) oral COVID-19 drug and following South African reporting that the omicron variant is relatively mild.

Additionally, AstraZeneca (AZN) said its Evusheld preventive antibody retained its neutralizing activity against the omicron variant in clinical trials conducted by Oxford University in the UK and the University of Washington in the US.

Meanwhile in data today for Japan, the Japan National CPI (YoY) in November came in at 0.6% (exp 0.5%; prev 0.1%). The National CPI Ex-Fresh Food (YoY) for November arrived at 0.5% (exp 0.4%; prev 0.1%) The National CPI Ex-Fresh Food, Energy (YoY) for the same month came in at -0.6% (exp -0.6%; -0.7%). This was, yet again, missing the Bank of Japan's target by a mile. 

Elsewhere, Hong Kong’s Hang Seng index advanced 0.48%. Mainland Chinese stocks were also in positive territory, with the Shanghai composite fractionally higher.

In Australia, the S&P/ASX 200 added 0.62%.

Meanwhile, some markets in Asia-Pacific, including Australia, Singapore and Hong Kong, are set to close early on Friday due to Christmas Eve. In the US, the stock market will be closed in observation of Xmas day that falls on a Saturday.

Nikkei H1 chart