Business & Investment

Asian equities fall as Delta variants cast a shadow over growth

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Hong Kong — Asian stocks failed to take a solid lead at the Wall Street bumper session on Friday. This is because the spread of delta variants of the coronavirus throughout the region has raised concerns about economic recovery.

MSCI’s broadest non-Japanese Asia-Pacific stocks fell 0.35%, China’s best-cap stocks fell 0.56%, and Hong Kong fell 0.46%.

The Nikkei Stock Average in Japan rose 0.11%.

Carlos Casanova, UBP’s Senior Economist Asia, said:

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China reported 124 confirmed cases on Friday, August 5. This is the maximum number of new coronavirus cases per day in the current outbreak, boosted by a surge in local infections. Authorities impose travel restrictions in some cities.

Both Thailand and Malaysia reported record daily cases on Thursday.

The MSCI Asia benchmark has regained much of its China-led losses last week, but is still down more than 10% from its February record high.

In contrast, MSCI’s Global Stock Index trades Wednesday’s record high hits slightly shy.

“International investors are still worried about what happened in the (China) education sector and hope that it will continue to boost sentiment,” said Casanova.

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“Regulatory promotion isn’t over yet, and it should continue to be a factor in the next three to six months or so,” he said.

Elsewhere in the region, PTBukalapak.com Tbk, an Indonesian e-commerce company backed by Ant Group and Singapore’s sovereign wealth fund GIC, made its market debut at 24.7 after raising $ 1.5 billion in the country’s largest initial public offering. % Increased.

Analysts say the listing will set a benchmark for IPO applicants in areas where global investors are chasing fast-growing companies.

The Nasdaq and S & P 500 closed record levels on Thursday following strong corporate earnings and a further decline in US unemployment claims. Attention is focused on the July job report scheduled for later today.

US equity futures S & P 500 e-minis fell 0.1%.

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Treasury yields expanded profits in Asian time, previously helped by sound unemployment claims reports.

Benchmark 10-year Treasury yields rose to 1.2369% compared to Thursday’s closing price of 1.217% in the US.

This had a knock-on effect on the dollar, rising to a week-long high against the yen.

The strong dollar and the potential for higher yields hurt gold. Spot prices fell 0.12% to $ 1,801.81.

Oil took a breather in early Asian trading on Friday, but the largest week since October after falling at the beginning of the week due to an increase in the number of COVID-19 cases and an unexpected increase in US crude oil reserves. Set to loss.

US crude oil was up 0.01% to $ 69.1. Brent crude was $ 71.28 a barrel, down 0.01%.

(Edited by Sam Holmes)

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    Asian equities fall as Delta variants cast a shadow over growth

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