By Zhang Mengying
Investing.com – Asia-Pacific stocks were mostly down on Monday morning as a new wave of COVID-19 outbreak in China exacerbated overarching worries about the global economic outlook.
Japan’s Nikkei 225 jumped 0.94% by 11:02 PM ET (0302 GMT).
South Korea’s KOSPI fell 0.21%.
In Australia, the ASX 200 fell 0.60%.
Hong Kong’s Hang Seng Index was down 2.87%.
China’s Shanghai Composite was down 1.55% while the Shenzhen Component was down 1.73%. In China, Shanghai reported its first case of the highly infectious BA.5 omicron sub-variant on Sunday and warned of “very high” risks, stoking fears of more lockdowns. Beijing has also vowed to shore up the economy.
Fears of high inflation and slowing economic growth continue to weigh on markets. U.S. unemployment rate remained 3.6% which eased some recession fears, raising expectations of more monetary tightening.
Treasuries edged lower, taking the U.S. 10-year yield toward 3.1%.
Investors now await U.S. Consumer Price Index (CPI) , due this Wednesday, which is expected to get closer to 9%, a fresh four-decade high.
The consumer-price index data will be “the core driver of risk this week” and a 9% print is possible, which “should keep US bond yields headed higher,” Pepperstone Group head of research Chris Weston said in a note.
President Joe Biden’s talks on possible action on U.S. tariffs on Chinese imports are ongoing. Biden and his Chinese counterpart Xi Jinping are expected to speak again in the coming weeks.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.