- Asian shares see the red amid fears of the coronavirus variant.
- Japan weighs border closure for South Africa and five other nations.
- WHO and UKHSA calls special meetings to discuss virus strain.
- US Commission calls for tighter controls on money flow to China markets.
Asian equities print the heaviest fall in three months as the covid woes escalate. While portraying the mood, MSCI's index of Asia shares outside Japan drops 1.8%, the most since August whereas Japan’s Nikkei 225 print 2.5% by the press time of early European morning on Friday.
It should be observed that Japan’s Nikkei fail to cheer news that Prime Minister Fumio Kishida pushed for a wage hike policy. The reason could be linked to the chatters, spotted by Jiji news, suggesting border controls for South Africa and five other nations due to the virus resurgence.
Stocks in China and Hong Kong have additional concerns to worry about as the Financial Times (FT) cites the US-China Economic Security Review Commission to signal challenges for funds flowing from Washington to Beijing. The same drowns shares in Australia and New Zealand, by around 2.0% at the latest, whereas markets in Indonesia and South Korea are down nearly 1.5% by the press time.
India’s BSE Sensex drops over 2.0% tracking the broad risk-off mood even as India Finance Secretary T. V. Somanathan said, per Reuters, “Year will end with Capex at or close to budget estimates.”
It’s worth noting that the World Health Organization (WHO) and the UK Health Security Agency (UKHSA) have both called for a special meeting to discuss the new version of the virus and any fears emanating from it to confirm its status as a “variant of concern.” The chatters over the virus version spotted from South Africa, with a formal name of B.1.1.529, grow stronger and weigh on the risk appetite as it is said to be immune to the vaccines.
On a broader front, yields dropped sharply with the 10-year bond coupon declining the most since July and its two-year counterpart marking the heaviest fall since March 2020. Additionally, US stock futures are also down over 1.0% whereas prices of oil slump 3.0% but those of gold gain 0.50% by the press time.
Given the virus fears back to the table, covid updates are the key to follow for fresh impulse.
Read: Yields drop the most in a week, S&P 500 Futures down too amid risk-off mood
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to strong daily gains near 1.0900
EUR/USD trades at its strongest level since mid-October near 1.0900 after starting the week with a bullish gap. The uncertainty surrounding the US election outcome weighs on the US Dollar and helps the pair continue to push higher.
GBP/USD holds above 1.2950 as USD stays under pressure
GBP/USD stays in positive territory above 1.2950 after failing to clear 1.3000 earlier in the day. Heading into the US presidential election, the 10-year US Treasury bond yield is down more than 2% on the day, weighing on the USD and allowing the pair to hold its ground.
Gold trades around $2,730
Gold price is on the defensive below $2,750 in European trading on Monday, erasing the early gains. The downside, however, appears elusive amid the US presidential election risks and the ongoing Middle East geopolitical tensions.
Three fundamentals for the week: Toss up US election, BoE and Fed promise a roller coaster week Premium
Harris or Trump? The world is anxious to know the result of the November 5 vote – and may have to wait long hours for the outcome. Markets will also respond to the composition of Congress. The Bank of England and the Federal Reserve will enter the fray afterward.
US presidential election outcome: What could it mean for the US Dollar? Premium
The US Dollar has regained lost momentum against its six major rivals at the beginning of the final quarter of 2024, as tensions mount ahead of the highly anticipated United States Presidential election due on November 5.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.