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Those Rebounds Are Good, But Asia Stocks Still Have Long Way to Go

Those Rebounds Are Good, But Asia Stocks Still Have Long Way to Go

(Bloomberg) -- The best two-day advance for Asian stocks since 2008 may bring some cheer to investors eyeing their battered portfolios, but there’s a long way to go before any semblance of stability is restored.

The MSCI Asia Pacific Index has rallied 9.7% since the start of Tuesday, narrowing its loss from a January high to 24%. The gauge is still 29% below its record hit in 2018. And volatility is still surging: price swings over the past two weeks are at levels not seen in more than 11 years.

Recent history doesn’t offer much hope. The last three surges of more than 5% in the S&P 500 Index were immediately followed by losses of similar magnitude. But news that the U.S. has reached a deal on stimulus measures may provide more momentum for gains, and some optimism that the worst for markets may have passed.

Those Rebounds Are Good, But Asia Stocks Still Have Long Way to Go

Taking a look at the major markets in the region, there is still plenty of work to be done.

In Japan, the Topix index is still 23% away from its mid-January high:

Those Rebounds Are Good, But Asia Stocks Still Have Long Way to Go

Meanwhile, South Korea’s Kospi index has an even tougher road, needing to jump at least 35% to get back to its own January high:

Those Rebounds Are Good, But Asia Stocks Still Have Long Way to Go

China’s Shanghai Composite Index, among the first markets to take a hit from Covid-19, is a relatively modest 12% away from its Jan. 13 high. The Hang Seng Index, however, is still some 25% away from its high this year:

Those Rebounds Are Good, But Asia Stocks Still Have Long Way to Go

And here’s how far away other key markets are from their pre-crisis highs:

  • India’s S&P BSE Sensex Index would need to rally 57% to regain its record level of 41,952.63 from Jan. 14.
  • Australia’s S&P/ASX 200 Index, at a peak of 7,162.49 on Feb. 20, would require a 43% rebound.
  • Singapore’s Straits Times Index would have to climb 35% to hit its 2020 high of 3,281.03.
  • For Southeast Asia more broadly, the MSCI Asean Index would need to jump 56%.
See also:
  • Asia Stocks Wrap
  • Global Markets Wrap
  • Markets Live Blog

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