Biden: "Not March 2020, No Re-lockdown"...Reviving Global Investment Sentiment

[Image source=Yonhap News]

[Asia Economy Reporter Seulgina Cho] "It is not March 2020 anymore." U.S. President Joe Biden made it clear that there will be no shutdowns like last year while unveiling measures to respond to the new COVID-19 variant Omicron. Global investor sentiment is also reviving, as seen in the New York stock market, which had plunged due to Omicron concerns but closed higher after four days.

On the afternoon of the 21st (local time), President Biden delivered a national address at the White House regarding the response to the Omicron spread, stating, "We do not need to shut down schools because of COVID-19," and "More than 200 million people have completed vaccination. We are prepared."

The Biden administration will provide 500 million free self-test kits starting next month. Emergency testing facilities will be added nationwide, and vaccination sites will be expanded. President Biden emphasized that "no one expected Omicron to spread this quickly," but unlike last year, there is no need to fall into 'panic' as preparations have been made. The administration is also considering lifting the ban on travelers entering the U.S. from South Africa and other countries where Omicron initially emerged.

On the same day, President Biden called vaccination a "patriotic duty" and repeatedly urged people to get vaccinated and receive booster shots. He mentioned that former President Donald Trump recently received a booster shot, saying, "(The booster shot) is one of the few things he and I agree on."

This is interpreted as emphasizing preventing the spread of Omicron through expanded vaccination rather than lockdowns, which inevitably cause economic and social harm. This contrasts with some European countries that are strengthening border controls. On the same day, New York Mayor Bill de Blasio also announced that citizens who receive booster shots by the end of the year will be given $100. As of last week, Omicron accounts for 73% of all confirmed cases in the U.S., becoming the dominant strain. However, the proportion of people in the U.S. who have received at least one vaccine dose is only in the low 70% range relative to the population, which is low compared to major developed countries. Including booster shots, the completion rate is less than 30%.

The market rebounded as it watched the Biden administration's moves. On that day, the Dow Jones Industrial Average closed at 35,492.70, up 1.60% from the previous session. The S&P 500 and Nasdaq indices also closed higher by 1.78% and 2.40%, respectively. The Korean KOSPI index also touched the 3,000 mark during the morning session on the 22nd, buoyed by the positive momentum in the U.S. stock market. Optimistic forecasts in the memory market led semiconductor stocks such as Samsung Electronics and SK Hynix to lead the gains. Japan's Nikkei 225 index and China's Shanghai Composite index also rose compared to the previous session.