BANGKOK – Asian stocks were lower on Monday as investors in many places became wary of the recent surge in coronavirus cases, while vaccination efforts are making little headway.
In the early trading Monday, the Nikkei 225 NIK,
in Tokyo lost 0.5% and South Korean Kospi 180721,
sharpness 0.1% higher. In Hong Kong, the Hang Seng index HSI,
fell 1% and the Shanghai Composite index SHCOMP,
fell 0.8%. Australia S & P / ASX 200 XJO,
gave 0.5%. Stocks increased in Taiwan Y9999,
but fell in Singapore STI,
and Indonesia JAKIDX,
Shares in SK Innovation Co. 096770 in South Korea,
jumped 14% after reaching a settlement in a trade dispute with rival LG Energy Solution. The companies pledged to work together to strengthen the EV battery supply chain in the US and continue plans to produce batteries in Georgia in what President Joe Biden called “a victory for American workers and the American auto industry.”
The shares of Chinese e-commerce giant Alibaba 9988,
were up 6% after the company said it was fined $ 2.8 billion for anti-competitive behavior. The penalty was less than feared as the ruling Communist Party tightened control of the burgeoning technology industries.
The declines in Asia followed a strong end last week on Wall Street, where gains in technology and health stocks pushed the S&P 500 and Dow Jones Industrial Average to new all-time highs.
Moderation in bond yields has helped restore confidence that the Federal Reserve will soon raise interest rates to contain inflation as the economy recovers from the shocks of the pandemic.
But in Asia, a resurgence in infections is undermining confidence in that trajectory.
China’s top disease control official said over the weekend that the effectiveness of Chinese coronavirus vaccines was low and the government is considering mixing them to get a boost. It was a rare admission and is because the country continues to fight outbreaks of the virus first reported in the central Chinese city of Wuhan.
Japan is struggling to control infections as it prepares for the 2020 Olympics in Tokyo. Thai health officials warn that the daily number of new infections could exceed 28,000 if urgent measures are not taken to stem the country’s worst outbreak yet.
“Vaccine roll-out in Asia remains slow, but what’s more concerning is a renewed divergence in the number of viruses, with second waves in India, the Philippines and now Thailand,” Axi’s Stephen Innes said in a report. That “continues to tarnish global travel prospects,” he said.
Friday the S&P has 500 SPX,
rose 0.8% for its fourth record high this week, closing at 4,128.80. The Dow DJIA,
0.9% to 33,800.60, while the Nasdaq composite COMP,
Up 0.5% to 13,900.19.
The yield on the 10-year US Treasury bill, which affects interest rates on mortgages and other loans, remained stable at 1.65%. It ended on Friday at 1.66% and was even 1.75% last Monday.
In other trade, US benchmark crude oil CLK21,
won 4 cents to $ 59.36 a barrel in electronic trading on the New York Mercantile Exchange. It lost 28 cents to $ 59.32 a barrel on Friday. Raw Brent BRNM21,
the international standard, won 4 cents to $ 62.99 a barrel.
The US dollar USDJPY,
bought 109.54 Japanese yen from 109.71 yen on Friday.