Coronavirus Update: China’s cases jump, Shanghai widens testing

Dhwani Mehta FXStreet

China’s zero-Covid policy has done little to contain the covid flare-ups across the nation, with millions back under lockdown. The world’s second-largest economy reported 699 cases for Monday, the highest daily tally since May 22, having reported over 1,000 infections over the weekend.

The growing outbreaks have induced authorities to impose fresh restrictions and lockdowns in recent days. Lanzhou, the capital of northwestern Gansu province, ordered its 4.4 million residents to stay home starting on Wednesday, and a county in Anhui province went into lockdown from Friday. Beihai in the southern Guangxi region on Saturday also announced lockdowns in parts of two districts that are home to more than 800,000 people, per Dawn News.

Although the situation appears less dire in the country’s financial hub, Shanghai, the authorities have widened the mass testing in 12 of the city’s 16 districts that are home to around 20 million people. Shanghai reported 23 cases on Monday vs. Sunday’s 17.

Market reaction

Investors remain on a cautious footing so far this Tuesday’s Asian trading, despite the uptick in the S&P 500 futures. Growing China covid concerns coupled with persistent economic slowdown worries continue to sap the market’s confidence. The US dollar index is up 0.16% on the day at 107.54, at the time of writing.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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