Asia report: Shares rally as China cuts quarantine period

Asian shares rallied at the close on Tuesday after China slashed the quarantine time for inbound travelers by half.

Benchmarks rose in Tokyo, Seoul, Sydney, Hong Kong and Shanghai, with only Singapore lower. Investors are eyeing remarks this week from Federal Reserve Chair Jerome Powell and European Central Bank chief Christine Lagarde along with first quarter US GDP data.

In a major easing of one of the world’s strictest Covid-19 curbs, China cut quarantine at centralised facilities to seven days from 14, and subsequent at-home health monitoring was reduced to three days from seven, the National Health Commission said in a statement.

The latest guidelines from the health authority also eased quarantine requirements for close contacts of people who have tested positive for the new coronavirus.

Tokyo’s Nikkei 225 index gained 0.66%, while Australia’s S&P/ASX 200 climbed 0.86%, Hong Kong’s Hang Seng index gained 0.84% and the Shanghai Composite index was up 0.84%.

Oil prices extended gains after climbing on Monday amid reports that producers in the Middle East were at or near maximum capacity, with little leeway to boost production.

Benchmark Brent crude was up 1.4% to $111 after strong gains on Monday.