Asian markets mixed after Wall St rally as virus concerns persist
Stock markets struggled to maintain their early gains on Wednesday and were mixed in subsequent trading despite a strong rebound in New York as optimism about the global economy and concerns over the fast-spreading Delta variant fueling volatility .
Investor confidence – based on months of vaccination and extensive support from the government and the central bank – has been shaken in recent weeks by a surge in infections around the world that have forced new lockdown and containment measures while endangering the global recovery.
This resulted in big losses for the stock markets, which reached record or all-time highs as brokers moved to safe-haven stocks such as Treasuries, gold and the yen.
The blame has largely fallen on the highly transmissible Delta variant, which has spread like wildfire across countries, including those with high vaccination rates. But the main concern is with those who find it difficult to vaccinate their populations quickly enough.
And the head of the World Health Organization warned Wednesday that the pandemic was “a test that the world fails.”
However, analysts said that while the near-term situation was grim, the outlook was on the outlook for recovery and market losses were to be expected.
“We had a dive, we had a shock, there is the fear of the Delta variant and there is the other side – that is, one day we go beyond Covid and when we do, we have a global recovery, ”David Kotok, of Cumberland Advisors, said Bloomberg Television.
“We have seen this tension in the markets in recent days.”
All three of Wall Street’s major indices closed more than 1% higher on Tuesday, but Asia struggled to make as much progress.
Tokyo, Shanghai, Sydney, Singapore, Wellington, Bangkok and Jakarta all increased, but Hong Kong, Seoul, Taipei and Manila fell.
London and Paris bet more than one percent each for the second day in a row, while Frankfurt was also up.
Oil prices retreated amid demand fears fueled by rising infection rates, while American Petroleum Institute data indicating a surprise increase in U.S. inventories last week deepened the market unrest.
This was accompanied by reports this week that OPEC and other major producers had finally agreed to increase production in response to warnings that there could be a supply crisis caused by the economic recovery and the return of people to their daily life.
“If official US crude stocks were to rise (Wednesday), instead of falling from a forecast of 4.5 million barrels, oil prices could be vulnerable to further losses,” OANDA’s Jeffrey Halley warned. .
“Indeed, oil remains very sensitive to intraday fluctuations in risk sentiment and will remain so for the rest of the week.”
– Key figures around 0810 GMT –
Tokyo – Nikkei 225: UP 0.6% at 27,548.00 (close)
Hong Kong – Hang Seng Index: DECLINE 0.1% to 27,224.58 (closing)
Shanghai – Composite: UP 0.7% at 3,562.66 (closing)
London – FTSE 100: UP 1.5% to 6,985.23
Dollar / yen: UP at 110.10 yen vs. 109.87 yen at 2210 GMT
Pound / dollar: DOWN to $ 1.3600 from $ 1.362
Euro / dollar: DOWN to $ 1.1755 from $ 1.1780
Euro / pound: DROP to 86.42 pence against 86.44 pence
West Texas Intermediate: LOWER 0.4% to $ 66.95 per barrel
North Sea Brent: DOWN 0.4% to $ 69.08 per barrel
New York – Dow: + 1.6% to 34,511.99 (close)