Asia shares rise, boosted by Wall Street rally despite virus

TOKYO (AP) — Asian shares rose Monday as investor sentiment received a big boost from the rally last week on Wall Street, despite worries about the more contagious coronavirus delta variant not only in the region but across the world.

Japan's benchmark Nikkei 225 rose 1.7% to 27,476.54 in morning trading. South Korea's Kospi jumped 1.3% to 3,101.19. Australia's S&P/ASX 200 edged up 0.3% to 7,483.60. Hong Kong's Hang Seng surged 2.4% to 25,441.00, while the Shanghai Composite added 1.1% to 3,465.35.

“Asia markets are set for a steady open,” said Yeap Jun Rong, market strategist at IG in Singapore, adding that the central bank in South Korea may the first in the region to raise interest rates “amid growing inflationary pressures and a robust export-led economic recovery.”

“That said, daily new COVID-19 cases are currently at its all-time high and that may dampen some hawkish sentiments going into the meeting.”

COVID-19 infections have been rising in parts of Japan, including Tokyo, with some sick people being turned away at hospitals. The government has set up “oxygen stations” which have beds and oxygen treatment for people waiting to be hospitalized.

Critics have said the government needs to do more to reorganize the overall hospital system, assigning certain facilities for COVID-19 treatment, a move that Japan has yet to take on a significant scale. Much of Japan remains under a government-declared state of emergency, but the measures are limited, such as having restaurants close early or limiting crowd size at stores.

The recent decline in Japanese shares provided an opportunity for bargain hunters. Toyota Motor Corp. shares rose more than 3% in morning trading in Tokyo. Other shares gaining included Nissan Motor Co., Sony Corp. and Nintendo Co.

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