Delta spreads scare investors, Asian stocks fall, Reuters

© Reuters. File picture: On February 28, 2020, a new type of coronavirus broke out in the Pudong Financial District of Shanghai, China. A man wearing a protective mask was seen inside the Shanghai Stock Exchange building. REUTERS/Aly Song

Scott Murdoch

HONG KONG (Reuters)-Asian stock markets fell on Tuesday as the Delta coronavirus variant spread in major markets in the region and put Chinese authorities on high alert, dampening investor confidence.

After Asian investors considered the impact that the increasing number of delta cases around the world might have on global economic growth, Asian trade faced a weak lead on Wall Street.

In Asia, the MSCI Asia Pacific’s broadest index outside of Japan fell 0.40% in early trading.

It fell 0.85% in early trading.

China’s blue chip index, the Shanghai and Shenzhen 300 Index, fell 0.80%, while the Hong Kong Index fell 0.83%.

Australia’s benchmark S&P/ASX200 fell 0.25% and hit a record high on Monday. Plaza Company (New York Stock Exchange:) Announced the acquisition of Afterpay Ltd, a buy-and-pay company, for US$29 billion.

The Reserve Bank of Australia is expected to keep interest rates unchanged at 0.10% when they meet later in the day, but due to the blockade of Sydney and Brisbane due to the expansion of the Delta variant, the Reserve Bank of Australia will withdraw its July bond reduction decision.

In China, the delta variant spread from the coast of the mainland to inland cities, prompting the authorities to take strict anti-epidemic measures to control the epidemic

“After the worst outbreak since the COVID crisis broke out, millions of people have been locked down in China. Given the supply chain is at risk, this may have a greater impact on the global economy,” Elizabeth Tian said. Citigroup (NYSE:) Director of Equity Derivatives Solutions.

Investors’ continued concerns about China’s strengthening of official regulations in areas such as technology, financial technology and education have exacerbated negative sentiment.

Chen Zhikai, head of Asian equities at BNP Paribas (OTC:) Asset Management, said: “Due to the uncertainty caused by regulatory measures, this is a challenging time for Asian stock markets.”

“Last week the China Securities Regulatory Commission (CSRC) took some measures to limit the spread of contagion and counter the popular ideas in the next industry. These days have worked, but then we saw traffic start to increase and reverse again.

“From the perspective of global investors, they are to some extent considering choosing a fairly strong earnings season in the United States and Europe, and when looking at Asia and thinking,’Do we need to be there now,’ the market has questions. .. The risk appetite will be readjusted in the short term.”

Despite the troubled Chinese technology industry, electric car manufacturer Li Auto launched a dual primary listing in Hong Kong on Tuesday. According to its exchange filing, the company will raise up to US$1.9 billion.

It was down 0.28%, down 0.18%, and up 0.06%.

The benchmark fell 5.5 basis points to 1.1839% in afternoon trading, continuing the decline pattern since the spring.

Shortly after a report by the Institute of Supply Management showed that US manufacturing growth slowed for the second consecutive month in July, the yield hit 1.151%, the lowest level since July 20. {nL1N2P92DT]

In U.S. trade, oil prices fell by 3.3% to 3.6%. Federal Bank analysts said this was because the Delta variant was seen as a “headwind on the recovery of oil demand”.

However, in early Asian trading, oil prices began to rise slightly.

US crude oil rose 0.31% to US$71.46 per barrel. 0.32% to US$73.15 per barrel. Gold fell slightly.

It fell by 0.1% at US$1812.4352 per ounce.

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