MOST Asian markets started the week with gains today following strong US jobs data, although stocks in Shanghai were flat after China said it would stick to its strict zero-Covid policy.

Global stock markets and oil prices rallied last week on hopes that Beijing would roll back some of its economically painful policies aimed at stamping out the disease within its borders.

But on Saturday, the Chinese government said it would “unswervingly” stick to its current plan, which involves harsh lockdowns and strict quarantine and testing regimens for even the smallest clusters of cases.

Wall Street equities had enjoyed a boost on Friday from the latest US jobs data, which showed that hiring remained resilient and wages continued to rise, though at a slower pace.

The data, which comes days ahead of critical US midterm elections, raised hopes of a soft landing for the world’s biggest economy despite aggressive Fed rate hikes aimed at taming inflation.

All three main US indexes ended around 1.3% higher on Friday, and Tokyo shares extended those gains on Monday to end the morning session 1.2% up.

Hong Kong shares dipped slightly at the open but quickly recovered to add 1.4% – adding to a jump of more than 5% in the previous session.

Bourses in Shanghai and Shenzhen were barely changed in morning trade, however.

“Last week, the financial market was stirring on rumours of China reopening,” Raymond Yeung and Zhaopeng Xing of ANZ Research said in a note on Monday.

But as the rumours about a reopening were unsubstantiated, “it is more likely the market is over-interpreting new information and downplaying old developments”, they wrote.

“Obviously, China feels the urgency to normalise the economy… But the political leadership will not adopt ‘living with Covid’,” the pair added.

“In our view, the availability of locally developed new vaccines will be a game changer”.

China is the last major economy wedded to a strategy of extinguishing Covid-19 outbreaks as they emerge.

It is still imposing snap lockdowns, mass testing and lengthy quarantines – despite the widespread disruption to businesses and international supply chains.

Seoul rose 0.8%, Taipei was up 1.1% and Sydney was up 0.5% in early trade today. Singapore was flat and Jakarta dipped 0.3%.

Dashed hopes of a Chinese reopening also drove down oil prices, which had rallied on Friday on the optimism that Beijing could soon change course, pushing up demand for crude.

Key figures around 0230 GMT

Tokyo - Nikkei 225: UP 1.2% at 27,528.66 (break)

Hong Kong - Hang Seng Index: UP 1.4% at 16,393.36

Shanghai - Composite: DOWN 0.1% at 3,068.62

London - FTSE 100: UP 2.0% at 7,334.84 (close)

Pound/dollar: DOWN at US$1.1325 from US$1.1376 Friday

Euro/dollar: DOWN at US$0.9933 from US$0.9964

Dollar/yen: UP at ¥147.21 from ¥146.62

Euro/pound: UP at 87.80 pence from 87.56 pence

West Texas Intermediate: DOWN 1.4% at US$91.28 per barrel

Brent North Sea crude: DOWN 1.2% at US$97.43 per barrel

New York - Dow: UP 1.3% at 32,403.22 (close) – AFP, November 7, 2022.