HONG KONG, Jan 4, 2022 (BSS/AFP) - Asian markets were mixed Tuesday as
investors struggled to take their lead from yet another record on Wall Street
that was fuelled by easing concerns about Omicron and remaining optimism
about the economic recovery.

   While the new Covid variant is spreading like wildfire around the world,
it appears to be far less severe than initially feared, raising hopes that
the pandemic could be overcome and life return to a little more normality.

   However, inflation, supply chain snags, central bank policy tightening and
geopolitical woes continue to weigh on sentiment and analysts have warned
that the blockbuster gains seen in recent years could be tougher to attain.

   "We expect 2022 to be far more challenging from an investment
perspective," Heather Wald, of Bel Air Investment Advisors, noted. "Rarely
has a market delivered three consecutive years of double-digit returns, as we
have seen from 2019-2021."

   Still, she still expected "equities to remain attractive versus other
liquid asset classes".

   And market strategist Louis Navellier added: "Equities are still the only
game in town, with cash and bonds offering negative real returns, and
equities forecasted with double-digit earnings growth and record stock
buybacks anticipated."

   The Dow and S&P 500 started the new year in the same fashion as they spent
most of 2021, by notching up new all-time highs, while the Nasdaq also
rallied thanks to a surge in big-name stars including Apple, which briefly
became the first firm valued at $3 trillion, and Tesla.

   But Asian markets were not quite as convincing.

   Tokyo and Sydney jumped more than one percent each on their first trading
day of the year, while there were also gains in Singapore, Taipei and
Jakarta.

   But Hong Kong and Shanghai dipped, weighed by tech firms and ongoing fears
about China's property sector, while Seoul was also in the red.

   Investors will be keeping a close eye on the release of minutes from the
Federal Reserve's December policy meeting hoping for some insight into its
plans this year in light of surging inflation, which is forcing central banks
around the world to wind back their pandemic stimulus. The Fed has already
started tapering its bond-buying programme and focus is now on what it will
do with interest rates, with some commentators predicting three hikes before
2023.

   Anticipation that rates will rise lifted the yield on the 10-year US
Treasury note above 1.6 percent Monday though analysts said that could also
reflect an upbeat view on the economic outlook.

   And strategist Navellier remained positive.

   "We've climbed bigger walls of worry than we face today," he said. "I am
expecting a very strong January, characterised by higher trading volume as
well as stunning fourth-quarter sales and earnings announcement.

   "Interestingly, thanks to political gridlock, the private sector is
expected to dominate GDP growth in 2022. Inflation is expected to persist,
but may moderate somewhat in the second half of 2022.

   "In my opinion, the Fed will remain accommodative in 2022 and the
Goldilocks environment will continue."

   - Key figures around 0230 GMT -

   Tokyo - Nikkei 225: DOWN 0.2 percent at 23,223.03 (break)

   Hong Kong - Hang Seng Index: DOWN 0.3 percent at 23,211.99

  Shanghai - Composite: DOWN 0.6 percent at 3,616.74

   Dollar/yen: DOWN at 115.44 yen from 115.47 yen late Monday

   Euro/dollar: UP at $1.1307 from $1.1302

   Pound/dollar: DOWN at $1.3477 from $1.3480

   Euro/pound: UP at 83.89 pence from 83.82

   West Texas Intermediate: DOWN 0.1 percent at $76.03 per barrel

   Brent North Sea crude: DOWN 0.1 percent at $78.93 per barrel

   New York - DOW: UP 0.7 percent at 36,585.06 (close)

   London - FTSE 100: Closed for public holiday