Asia’s tourism and consumer stocks rose amid optimism more Chinese will travel as pandemic-related restrictions ease.
(Bloomberg) — Asia’s tourism and consumer stocks rose amid optimism more Chinese will travel as pandemic-related restrictions ease.
In Hong Kong, the coming end to one of the world’s longest mask mandates helped lift shares of beauty company Sa Sa International Holdings Ltd. as much as 6.4%. Casino operator MGM China Holdings Ltd. and mall-related Wharf Real Estate Investment Co. rose about 3% each.
Read: Hong Kong Ends One of the Longest Mask Mandates After 945 Days
Tokyo Disney Resort operator Oriental Land Co. gained 3.5%, giving the biggest boost to Japan’s Topix, while cosmetics maker Shiseido Co. climbed 2% after Japan said it will ease Covid testing requirements for China’s travelers from March 1.
“The boom in countries such as Japan, Hong Kong and South Korea would be even stronger than in ASEAN, as restrictions in those countries were more stringent,” said Nirgunan Tiruchelvam, an analyst at Aletheia Capital. “There is even greater potential for a travel revival in those countries.”
South Korea’s Hana Tour Service Inc. gained 6.8%, the most since Sept. 6. Among Philippine casino operators, which rely on traffic from mainland China, Bloomberry Resorts Corp, jumped 5.4% while Leisure & Resorts World Corp. gained 3.7%.
China’s reopening continues to help Southeast Asian economies, with Thailand receiving the most support given its income from visitors, Bloomberg Intelligence analysts Sufianti Sufianti and Marvin M Chen wrote in a note.
Thailand welcomed 2.14 million foreign tourists in January, supported by the peak travel season and China’s reopening. Arrivals in January jumped more than 1,500% from a year earlier, according to data from the Ministry of Tourism and Sports released Monday.
–With assistance from Ian Sayson.
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