Asian shares were mixed Monday, as fears of further waves of coronavirus outbreaks clouded the economic outlook for the region, tempering gains.
Japan’s benchmark Nikkei 225 was little changed in afternoon trading, inching up but 0.1% to 30,254.01 after zigzagging earlier within the day. Australia’s S&P/ASX 200 gained 0.8% to 7,404.30. South Korea’s Kospi added 0.2% to 3,131.83. Hong Kong’s Hang Seng added 0.7% to 24,360.55, while the Shanghai Composite shed 0.6% to 3,591.49.
Japan’s ruling party holds an election later in the week to settle on a pacesetter , who is probably going to succeed Yoshihide Suga as prime minister after only one year in office. All the candidates are bound to stick with the nation’s pro-U.S. policies, despite some nuances in their views.
They are also all promising to spice up government spending to undertake to catalyze growth within the world’s third largest economy.
Analysts also say Japan’s financial institution “tankan” economic survey for the third quarter, due out Friday, likely will show a deterioration in business conditions due to various disruptions to provide chains and renewed outbreaks of COVID-19 in many regions.
Although some parts of the planet have lifted COVID-19 restrictions and are gradually returning to “normal” life, worries remain in Asia about further waves of infections because vaccine rollouts are slower than the West in some nations.
In Singapore, further COVID-19 restrictions began in an effort to curb the virus’ spread, as daily new cases have topped the city-state’s peak reached in April 2020.
“”Overall, the manufacturing sector may remain resilient as seen from previous phases of restrictions, but the services sector may come struggling . That said, previous business adjustments and softer tightening compared to past restriction phases may aid to scale back some impact,” said Yeap Jun Rong, strategist at IG in Singapore.
Wall Street closed out a choppy week of trading with a mixed finish for the main stock indexes, though the S&P 500 managed its first weekly gain in three weeks.
The S&P 500 rose 0.1% to 4,455.48 and is now within 1.9% of the all-time high it set Sept. 2. The Dow Jones Industrial Average added 0.1% to 34,798. The Nasdaq slipped but 0.1% to 15,047.70, while the Russell 2000 dropped 0.5% to 2,248.07.
U.S. markets have had a rough September and investors might be certain more volatility given various concerns, including COVID-19 and its lingering impact on the economy, along side a slow recovery for the utilization market.
Worries over troubled Chinese land developer Evergrande are still weighing on global markets. Some Chinese banks on Friday disclosed what they’re owed by Evergrande, seeking to dispel fears of monetary turmoil because it struggles under $310 billion in debt.
In energy trading, U.S. benchmark crude added 92 cents to $74.90 a barrel in electronic trading on the ny Mercantile Exchange. It rose 68 cents to $73.98 per barrel on Friday. Brent crude, the international standard, gained 93 cents to $79.02 a barrel.
In currency trading, the U.S. dollar inched right down to 110.64 Japanese yen from 110.72 yen. The euro cost $1.1719, up from $1.1713.
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