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China’s Covid fears as Beijing expands mass testing


SINGAPORE — Markets in Asia-Pacific traded mixed on Tuesday morning as investors are set to closely watch market reaction to Covid fears in China as Beijing expands mass testing.

Japan’s Nikkei 225While the Topix was flat, it rose 0.17 percent. South Korea’s Kospi rose by 0.55%.

Australian stocks fell after Monday’s holiday saw trading resume from the weekend. The S&P/ASX 200 plummeted 2.34% in early trade.

As a result, major miners have been affected. Rio TintoMore than 4% fell Fortescue MetalsDiverted 6.6% BHPThe drop in sales was almost 6%

MSCI’s Asia-Pacific broadest index, which excludes Japan, fell by 0.19%.

The news of Covid’s rapid spread in China caused markets to react negatively, triggering fears about increased production lockdowns. It directly affected Asian financial markets as well as rippled across global financial markets.

ANZ Research

Brian Martin and Daniel Hynes

HSBC’s first quarter results will be reported in earnings. Data for Tuesday’s economic report will include South Korea’s Gross Domestic Product for the First Quarter.

Investors should be aware of the Chinese markets. Stocks from Hong Kong and Mainland plunged MondayFears of a Covid spike and lockdowns possible in Beijing were causing concern.

Markets will watch for reactions to Beijing’s announcement late Monday, that mass testing will now be carried out in 10 more districts and 1 economic development zone according to Reuters.

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Markets responded negatively to the news that COVID was spreading faster in China. This prompted fears about increased production and lockdowns. “This directly impacted Asian financial markets, and it also rippled through the global financial market,” wrote Daniel Hynes and Brian Martin of ANZ Research in a Tuesday memo.

U.S. stocks had been in negative territory earlier today, but they recovered at the end. Dow Jones Industrial Average lost nearly 500 points Monday. It gained 238.06 point, 0.7% to 34,049.46. The S&P 500 ticked up 0.6% to 4,296.12. Nasdaq Composite, a tech heavy stock, gained 1.3% at 13,004.85.

Oil and currencies

The U.S. dollar indexThe, which measures the greenback’s performance against a basket of peers, reached 101.670. This is an increase from 101.

The Japanese yenThe dollar traded at 127.60, slightly higher than the levels of 128.1 previously. The Australian dollarThe price was $0.7176. This is slightly less than the $0.718 that it was earlier.

The Asia Trade saw little change in oil prices Tuesday morning after falling Monday due to Covid Fears in China.

U.S. crude futures traded just above the flatline to $98.58 per barrel. International benchmark Brent crude futures rose 0.12% to $102.44 per barrel.