- New COVID wave in various countries.
- Markets in New Zealand and Southeast Asia fell.
- The Kospi in Seoul declined.
- The Dollar dropped on Thursday While the Euro rose to $1.1224.
As traders saw a surge in coronavirus cases in Europe and anti-disease restrictions threaten to impede trade and travel, Asian stock markets plummeted on Friday as reported by ABC News.
New COVID wave
Shanghai, Tokyo, Hong Kong, and Sydney all saw a drop in business. Thursday was a holiday in the United States, therefore markets were closed.
After daily viral mortality tripled, Austria enacted a 10-day statewide lockdown, while Italy imposed restrictions on unvaccinated people’s activities. Americans were urged by the US authorities to avoid Germany and Denmark. Morocco has halted flights to and from France after daily new cases surpassed 30,000.
In a report, ActivTrades’ Anderson Alves said, “Traders will be closely monitoring the situation with the fresh COVID wave across Europe.” China’s restrictions on access for shipping crews, according to Alves, are “prolonging a crisis” in global trade.
The Shanghai Composite Index fell 0.4% to 3,569.86, while the Nikkei 225 in Tokyo fell an unusually large 2.5% to 28,779.03. Hong Kong’s Hang Seng Index fell 1.9% to 24,260.94.
The Kospi in Seoul declined 1% to 2,949.71, while the S&P-ASX 200 in Sydney fell 1% to 7,301.90. Markets in New Zealand and Southeast Asia also fell.
Wall Street
On Wednesday, the S& P 500, the most widely followed index on Wall Street, gained 0.2%. Markets in the United States will reopen for a shorter trading session on Friday.
Investors are warier after Federal Reserve members acknowledged in notes from their October meeting released this week that they recognised the possibility of raising rates sooner than previously intended in response to increased inflation.
Strong U.S. business results and signals that the world economy was recovering after last year’s record-breaking drop inactivity owing to the epidemic had boosted financial markets. Easy credit and other measures implemented by the Fed and other central banks have bolstered stock values.
Investors are concerned that stronger-than-expected inflation may put pressure on central bankers to withdraw stimulus sooner than intended. The Fed had stated that rates would remain low until late next year.
On the New York Mercantile Exchange, benchmark U.S. crude slid $1.68 to $76.71 a barrel in electronic trading. Brent crude, the international oil price benchmark, fell from $1.29 to $79.63 per barrel in London.
The dollar dropped to 114.62 yen from 115.36 yen on Thursday. From $1.1221, the euro rose to $1.1224.
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Source: ABC News
