Global Times suggests China could soon abandon zero-Covid policy

Risk sentiment is witnessing a fresh boost, as investors assess the latest tweets from Hu Xijin, a commentator at the highly-influential Chinese state media, Global Times.

Hu tweeted: “The new Omicron variant is spreading fast, pushing adjustment in COVID response in many parts of China. China’s current rate of severe cases is about 0. 025%. Most Chinese people are no longer afraid of being infected. China may walk out of the shadow of COVID-19 sooner than expected.”

Another tweet read: “Protests took place in many places in China over the past weekend. With the relaxation of the epidemic prevention and control measures, public sentiment will soon calm down. I can give an absolute prediction: China will not become chaotic or out of control.”

These set of tweets suggest that China could soon abondon its zero-Covid policy, boosting the S&P 500 futures 0.30% higher while the AUD/USD pair recaptures 0.6700, up 0.80% on the day.