A global rebound in stocks moderated in Asia on Wednesday amid uncertainty over the omicron virus strain’s economic impact and a foggy outlook for U.S. fiscal stimulus.
A rally in technology shares bolstered Hong Kong, while markets in China and Japan were steady. U.S. futures turned lower after the S&P 500 snapped three days of declines and the tech-heavy Nasdaq 100 climbed more than 2%. European contracts made modest gains. Risk appetite revived on Tuesday, stoking a jump in commodities and eroding demand for havens.
Crude oil and Treasury yields remained higher, while a dollar gauge was little changed. A strong 20-year auction underscored wider, structural demand for U.S. government bonds amid a savings glut and range of economic risks.
Thinner trading volumes heading into the Christmas holidays could exacerbate market swings, leaving strategists reluctant to read much into day-to-day gyrations during the period. Markets continue to be shadowed by escalating mobility curbs to fight omicron and a diminishing stimulus tailwind.
