Asian markets gain momentum following China's decision to loosen Covid restrictions

The news of China ending mandatory quarantine for arrivals has resulted in instant gains when it comes to Asian markets. China’s benchmark Shanghai index and the second index in Shenzhen both opened with considerable gains while similar trends were also observed in Tokyo, Seoul, Singapore and Mumbai.

The Chinese economy has been suffering quite a bit due to the tough restrictions imposed by the Xi Jinping government but the new concessions has already seen a major uptick in tourist activity and experts around the world are hoping for a relatively quick recovery.

"Global equities climbed Tuesday while the dollar declined amid positive sentiment from China upping the speed limits on zero-Covid off ramps and the softening of a key inflation measure in the US," Stephen Innes of SPI Asset Management told AFP when asked about the developments.

"Inbound tourism is not a huge economic bounty for China relative to domestic tourism but policy fast-track and early zero-Covid exit means growth could recover enormously," he added.

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The Chinese government decided to reverse some of its strict COVID-19 restrictions following massive protests around the country. For the first time in almost three years, COVID-19 was classified a Class B infectious disease and that means the citizens can move much more freely.

The markets were also impacted by the rising price of oil following Russia’s announcement about reducing their production by over seven percent in the next year. On top of that, the blizzard in the United States has caused the production of over 1.8 million barrels of oil per day.