Business & Investment

Asian stocks fall as delta spreads spy on investors By Reuters

© Reuters. File photo: On February 28, 2020, in the Pudong Financial District of Shanghai, China, a man wearing a protective mask can be seen inside the Shanghai Stock Exchange building, which was hit by a new coronavirus outbreak. REUTERS / Aly Song

Scott Murdoch

Hong Kong (Reuters)-Asian stocks fell on Tuesday as a variant of the delta coronavirus spread to major markets in the region, increasing vigilance by Chinese authorities and damaging investor confidence.

Asian trade faced a weak lead from Wall Street after investors considered the potential impact of increasing Delta’s global cases on global economic growth.

In Asia, MSCI’s widest non-Japanese Asia Pacific stock index fell 0.40% in early trading.

Early trading was 0.85% off.

China’s CSI 300 Index fell 0.80%, while Hong Kong fell 0.83%.

The Australian benchmark index S & P / ASX200 was 0.25% off, breaking the record on Monday. Square Inc (NYSE :) has announced a $ 29 billion offer to company Afterpay Ltd after paying now.

The Reserve Bank of Australia plans to keep interest rates at 0.10% when it meets later that day, but the lockdown in Sydney and Brisbane caused by the expanding Delta variant overturns the July bond taper decision. increase.

In China, the spread of Delta variants from the mainland coast to inland cities has prompted authorities to implement rigorous epidemic measures to control outbreaks.

“Millions of people have been blocked in China after the worst outbreak since the beginning of the COVID crisis, putting risks to the supply chain, which could have a greater impact on the global economy.” Elizabeth Tian said. Citigroup (NYSE :) Equity Derivatives Solutions Director.

In addition to negative sentiment, investor concerns continue about tightening official Chinese regulations in sectors ranging from technology, fintech and education.

“It’s a difficult time for Asian equities with the uncertainty created by regulatory measures,” said Zhikai Chen, head of Asian equities at BNP Paribas (OTC :) Asset Management.

“Last week, the China Securities Regulatory Commission (CSRC) provided clues to limit the spread of the infection and counter general ideas about the next sector. It worked for a few days, but then. The flow is reversed again.

“From the perspective of global investors, they are considering choosing a fairly strong earnings season in the US and Europe to some extent, and when looking at Asia,” Do I need to be there now? ” I have. .. There is a short-term readjustment of risk appetite. “

Despite the turmoil in China’s tech sector, electric car maker Li Auto will launch a dual-primary listing in Hong Kong on Tuesday, raising up to $ 1.9 billion, according to exchange filings.

It decreased by 0.28%, decreased by 0.18%, and increased by 0.06%.

In the afternoon trading, the benchmark fell 5.5 basis points to 1.1839%, expanding the downtrend since spring.

Immediately after a report by the Institute for Supply Management showed that US manufacturing growth slowed for the second straight month in July, the lowest yield since July 20 reached 1.151%. {nL1N2P92DT]

In US trade, oil fell between 3.3% and 3.6%. This is the result of the Delta variant being seen as a “headwind of a recovery in oil demand,” according to Commonwealth Bank analysts.

However, during the early Asian trade, oil began to chase slightly higher.

US crude oil rose 0.31% to $ 71.46 a barrel. It was 0.32% up to $ 73.15 per barrel. Gold was slightly lower.

It was down 0.1% $ 1812.4352 per ounce.



Asian stocks fall as delta spreads spy on investors By Reuters

https://www.investing.com/news/stock-market-news/asian-stocks-slip-as-delta-spread-spooks-investors-2576819 Asian stocks fall as delta spreads spy on investors By Reuters

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