Shenzhen shares fall 6%; oil glass 3%

SINGAPORE – The Chinese mainland index led to losses as Asia-Pacific markets fell sharply on Monday following a divestment on Wall Street on Friday.

The Shenzhen component decreased 6.08% to 10,379.28, while the Shanghai composite decreased 5.13% to 2,928.51.

“It’s no surprise, and it makes every logical sense, that the market should be concerned about the Covid situation, because it clearly affects economic activity. It affects the earning potential of many parts of the market,” said Timothy Moe, head of Asia- Pacific. stock strategist at Goldman Sachs.

China has struggled to curb its worst outbreak of the virus despite harsh shutdowns in its largest city, Shanghai. Over the weekend, the capital Beijing warned that the virus has been spreading undetected for about a week.

He said there is a lot of political support on the way, especially in infrastructure spending, but it can not take place when the economy is locked.

“That’s why the market is very focused on the short-term issues with Covid,” he told CNBC’s Street Signs Asia.

Hong Kong’s Hang Seng Index fell 3.57% in late trading, while the Hang Seng Tech Index fell 4.43%. Shares of Chinese video company Bilibili fell 5.24% in Hong Kong and Alibaba’s Hong Kong-listed shares fell 4.96%.

Japan’s Nikkei 225s fell 1.9% to 26,590.78, while Topix fell 1.5% to 1,876.52. Nissan shares closed 5.05% lower after a Bloomberg report that Renault may be selling part of its stake in the Japanese company to focus more on electric cars.

In South Korea, Kospi fell 1.76% to 2,657.13, and Kosdaq fell 2.49% to 899.84. Shares of Hyundai Motor rose and closed 1.11% higher after the company reported a 16.8% increase in first quarter net profit compared to the same period in 2021.

The markets of Australia and New Zealand are closed on Monday due to a public holiday.

US stock futures fell slightly after a sell-off on Friday, with the Dow Jones Industrial Average dipping more than 900 points. The S&P 500 closed 2.8% at 4,271.78, the worst day since March. The Nasdaq Composite fell 2.6% to 12,839.29.

MSCI’s broadest index of Asia-Pacific equities outside Japan fell 2.39%.

On the economic data front, Singapore reported that its core inflation rate rose by 2.9% in March compared to a year ago, the fastest pace in a decade.

The increase was driven by higher inflation for food and services, authorities said. A Reuters survey among analysts predicted that core inflation would grow by 2.4%.

The Chinese telecommunications company ZTE reports earnings on Monday.

Stock options and investment trends from CNBC Pro:

Oil fell 3%

US crude oil futures fell 3.79% on Monday and traded at $ 98.20 per share. barrel. International benchmark Brent crude oil futures fell 3.8% to $ 102.60 per share. barrel.

China’s Covid situation, global GDP and the war in Ukraine are all variables affecting the outlook for oil prices, said Dan Yergin, vice president of S&P Global.

“No one knows right now, because there are all these factors that are different from just normal supply and demand,” he told CNBC’s “Street Signs Asia.”

The US dollar index, which follows the dollar against a basket of its peers, was 101,612.

The Japanese yen was last traded at 128.07 per dollar. It crossed the 129 level last week before strengthening slightly. The Australian dollar was at $ 0.7162, a slight decrease from last week.

– CNBC’s Evelyn Cheng, Sarah Min and Yun Li contributed to this report.

Leave a Reply

Your email address will not be published. Required fields are marked *