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Asian shares dip as virus fears linger

Asian shares dipped in thin holiday trade on Monday as fears lingered over the impact of the Omicron coronavirus variant.

Hong Kong: The Hang Seng Index is the main indicator of the overall market performance in Hong Kong. — © AFP
Hong Kong: The Hang Seng Index is the main indicator of the overall market performance in Hong Kong. — © AFP

Asian shares dipped in thin holiday trade on Monday as fears lingered over the impact of the Omicron coronavirus variant.

The highly transmissible strain has sent new cases skyrocketing across the globe, with countries reviving lockdowns, major sports leagues cancelling fixtures, and cruise ships returning to port with Covid-infected passengers.

Even in China, where a “zero-Covid” strategy has largely kept infections in check, officials recorded 206 new infections Sunday — a count tiny by worldwide standards, but the country’s biggest such figure in 21 months.

Tokyo closed down 0.4 percent, while Shanghai and Seoul were both trading marginally lower. Hong Kong and Sydney were closed for a holiday.

“Concerns about Omicron weighed on the market,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

And senior strategist Yoshihiro Ito of Okasan Online Securities warned that “the sense of caution over the spread of infections (due to Omicron) remains strong”.

“The market also lacked strength, with the number of investors limited due to the year-end holiday,” Horiuchi told AFP.

On Friday before the Christmas break, markets wavered in similarly subdued trade.

A day earlier on Wall Street, the S&P 500 ended the last session before the long holiday weekend at a fresh record following a raft of mostly decent US economic data.

And a study released Sunday showed consumers were in the mood to spend over the holiday season, with retail sales soaring 8.5 percent over last year.

Online sales were up 11 percent and in-store sales up 8.1 percent between November 1 and Christmas Eve, according to the Mastercard SpendingPulse study.

“Consumers splurged throughout the season,” said Steve Sadove, senior advisor for Mastercard and former CEO of Saks Incorporated.

– Key figures around 0650 GMT –

Tokyo – Nikkei 225: DOWN 0.4 percent at 28,676.46

Hong Kong – Hang Seng Index: UP 0.1 percent at 23,223.76 (Friday close)

Shanghai – Composite: DOWN 0.2 percent at 3,611.49

London – FTSE 100: FLAT at 7,372.10 points (Friday close)

New York – Dow: UP 0.5 percent at 35,950.56 (Thursday close)

Euro/dollar: DOWN at $1.1319 from $1.1335

Pound/dollar: DOWN at $1.3400 from $1.3417

Euro/pound: UP at 84.47 pence from 84.44 pence

Dollar/yen: UP at 114.47 yen from 114.38 yen

West Texas Intermediate: DOWN 1.3 percent at $72.80 per barrel

Brent North Sea crude: DOWN 0.3 percent at $75.88 per barrel

AFP
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With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

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