Asian stocks down as Covid surge in China spooks investors by AFP Staff Writers Hong Kong (AFP) Dec 29, 2022 Asia-Pacific stocks fell on Thursday as the Covid surge in China cast a shadow over markets across the region. Investors had cheered the easing of China's strict zero-Covid controls -- which had hammered the world's second-largest economy -- but are now worried about the impact of the outbreak on global supply chains and inflation. The United States, Japan and Italy have imposed restrictions on visitors from China, and a senior US official warned that the surge increases the potential for new Covid variants to emerge. Hong Kong closed down 0.79 percent, with Tokyo losing 0.94 percent. Sydney, Singapore, Shanghai, Taipei and Seoul were also in the red. Volumes were thin in the final trading week of the year, with investors chewing on the prospects of a recession in 2023, and how central banks -- especially the US Federal Reserve -- are going to handle the fight against rampaging inflation. The Fed and others have repeatedly raised interest rates to put the brakes on soaring prices, but higher borrowing costs also slow down economic activity. "The key trading themes will continue to dominate in early January, most notably how far central banks are willing to push interest rates in order to display their determination to get inflation back to target," OANDA's Craig Erlam said in a note on Wednesday. "Many have already started easing off the brake and we're seeing plenty of signs of pressures easing, albeit perhaps not as much as policymakers would have liked by now." - Oil prices drop - The plunge in Asia-Pacific shares followed sharp falls on Wall Street on Wednesday, where the main indexes all closed in the red. The Dow lost 1.1 percent, while the tech-rich Nasdaq slid 1.4 percent. The US losses came on a low day for most markets as hopes for a so-called "Santa Claus rally" ebbed. The "Santa Claus rally" is a seven-session stretch over Christmas and New Year that typically sees stocks drifting higher in light trade. Analysts said low-volume, low-risk trade will continue until the year ticks over. In oil markets, the two main crude contracts were both lower, with traders concerned about the possibility of China's Covid outbreak fuelling a global resurgence of the disease and depressing energy demand. In Europe, Germany shrugged off Russia's ban on oil sales to countries and companies that comply with a price cap on its crude exports. The price ceiling of $60 per barrel agreed by the European Union, G7 and Australia came into force this month in response to the Russian invasion of Ukraine. It seeks to restrict Russia's revenue while making sure it keeps supplying the global market. - Key figures at around 0830 GMT - Tokyo - Nikkei 225: DOWN 0.94 percent at 26,093.67 (close) Hong Kong - Hang Seng Index: DOWN 0.97 percent at 19,741.14 (close) Shanghai - Composite: DOWN 0.4 percent at 3,073.70 (close) Euro/dollar: UP at $1.0639 from $1.0618 at 2215 GMT on Tuesday Pound/dollar: UP at $1.2041 from $1.2018 Euro/pound: UP at 88.35 pence from 88.30 pence Dollar/yen: DOWN at 133.69 from 134.39 yen West Texas Intermediate: DOWN 1.63 percent at $77.67 per barrel Brent North Sea crude: DOWN 1.5 percent at $82.01 per barrel New York - Dow: DOWN 1.1 percent at 32,875.71 (close) London - FTSE 100: UP 0.3 percent at 7,497.19 (close)
World economy faces more pain in 2023 after a gloomy year Paris (AFP) Dec 28, 2022 This was supposed to be the comeback year for the world economy following the Covid pandemic. Instead, 2022 was marked by a new war, record inflation and climate-linked disasters. It was a "polycrisis" year, a term popularised by historian Adam Tooze. Get ready for more gloom in 2023. "The number of crises has increased since the start of the century," said Roel Beetsma, professor of macroeconomics at the University of Amsterdam. "Since World War Two we have never seen such a complicated ... read more
|
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us. |