Asian stock markets closed broadly higher at 30 on Wednesday. Investors remain optimistic about the easing of restrictions related to China’s zero-coronavirus policy after protests erupted in several of the country’s metropolitan areas. Since then, Beijing has loosened some measures and tried to quell popular demands. Markets also followed the official Chinese PMI, which pointed to a decrease in the activity of the Asian giant.

The Shanghai Composite rose 0.05% to 3151.34, while the less-full Shenzhen Composite rose 0.12% to 3151.34. Hong Kong’s Hang Seng jumped 2.16% to 18,597.23 as consumer and tech stocks offset losses in property developers. South Korean Kospi also closed at a fast pace with an increase of 1.61%, to 2472.53 points.

Markets remain bullish on concrete changes to China’s Covid-0 policy after President Xi Jinping’s government amends its message and general advice to local authorities as it speeds up vaccinations for the elderly and tries to quell protests against its tough stance regarding illness.

According to Danske Bank, “China has reached a point where the economic and social costs have become too great and now outweigh the health care costs of gradually reopening, leading to increased deaths.” The important thing for the market, households and companies, is that now the end of the covid-zero policy and the improvement of the economy are not far off, even after a booming period of rising cases, the bank said.

The economic costs of Covid-19 were evident in the official Purchasing Managers’ Index (PMI) for November, according to Capital Economics. Data released last night showed a decline in activity in China’s service and manufacturing sectors.

“Downside risks continue to rise as the virus situation continues to worsen and will heavily impact the economy until 2023,” the British consultancy predicts.

The exception today was the Nikkei index from Tokyo, which closed down 0.21% to 27,968.99 points. Taiwan’s Taiex rose 1.16% to hit 14,879.55, while the Australian S&P/AX 200 rose 0.43% to hit 7,284.20. According to Dow Jones Newswires.