Asian markets mostly higher after omicron worries rattle Wall Street

- Advertisement -


TOKYO – Asian shares traded mostly on Wednesday amid panic over concerns over new coronavirus variants.

- Advertisement -

Japan’s benchmark Nikkei 225 NIK,
+0.81%
It was up 0.8% in morning trading, after a turnaround earlier in the session. Kospi 180721 of South Korea,
+1.58%
jumped 1.7%, while Australia’s S&P/ASX 200 XJO,
-0.30%
dropped 0.3%. Hang Seng HSI of Hong Kong,
+1.46%
up 1.5%, while the Shanghai Composite SCHAMP,
-0.01%
Little was changed, being less than 0.1%. Benchmark Index in Singapore STI,
+1.24%,
Taiwan Y9999,
+0.48%,
Malaysia FBMKLCI,
-0.64%
and Indonesia JAKIDX,
+0.27%
All high edge.

- Advertisement -

The detection of the Omicron variant announced on Tuesday in Japan as well as in Brazil has raised fears that tourism and other economic activities will be affected by further measures to contain the infection. Experts say it could take weeks for them to learn more details about whether the Omicron type causes serious illness.

Asian markets were nervous after an overnight drop on Wall Street and Moderna’s CEO’s comment that current COVID-19 vaccines are less effective with Omicron than earlier variants, Anderson Alves, a trader at ActiveTrades, said. can be.

- Advertisement -

“Traders will be looking for new insights about the new version and its impact on the existing vaccine framework,” Alves said.

The head of the Federal Reserve said Wall Street’s losses deepened that it would consider ending its support for financial markets sooner than expected.

s&p 500 spx,
-1.90%
fell 1.9%, erasing its gains from the day before. The sell-off intensified after Fed Chair Jerome Powell told Congress that the central bank could halt bond purchases worth billions of dollars each month “probably a few months ago.” It was on pace to complete purchases in June to cheer up the economy by slashing rates for mortgages and other long-term loans.

The end of the buyout will open the door for the Fed to raise short-term interest rates from its record low of nearly zero. This in turn would dilute a key propellant that has sent the stock to record highs and allay concerns about an overpriced market. As investors raised their hopes for the Fed’s first rate hike following Powell’s comments, yields on short-term Treasuries soared.

Shares’ losses increased sharply as the Dow Jones Industrial Average (DJIA) declined.
-1.86%
It fell 711 points as more than tripled in half an hour. The blue chip index ended 652.22 points, or 1.9%, down at 34,483.72.

Nasdaq Composite Comp,
-1.55%
It was slightly better than the rest of the market, down 245.14 points, or 1.6%, at 15,537.69.

The woes on interest rates came as stocks were already weak in the morning, due to concerns about how badly they were doing. fast spreading ommicron version Corona virus can affect the global economy.

Much remains to be determined about the variant, including whether it could slow down an already gummed-up supply chain or scare people away from stores. That uncertainty has sent Wall Street through ups and downs as investors struggle to constrain how much economic damage Omicron will ultimately do.

“There will be extreme volatility around any information,” said Christina Hooper, chief global market strategist at Invesco. He said that before we know more, the market is likely to remain cautious.

Benchmark US Crude CLF22 in Energy Trading,
+2.09%
It rose $1.42 to $67.60 a barrel. Brent Crude BRNF22,
-3.91%,
The international benchmark fell by $2.87 to $70.57 a barrel.

In currency trading, US Dollar USDJPY,
+0.20%
increased from 113.18 yen to 113.44 Japanese yen.

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox