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Asia markets stabilise amid Omicron uncertainty

30 Nov 2021

Asian-Pacific stock markets showed signs of stabilising as investors prepared for weeks of uncertainty over whether the Omicron variant could derail the global economic recovery. Trading was erratic earlier yesterday (29) but there were signs of recovery as S&P 500 Futures added 0.8% and Nasdaq Futures added 0.9%. Both indices suffered their sharpest fall in months last Friday (26), with travel and airline stocks hit particularly hard. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1% but was off early lows. Japan’s Nikkei average was down 0.02% at 28.746.49 by the midday break, after dropping 1.4% earlier in the session. Australia’s ASX 200 and Hong Kong’s Hang Seng Index pared early morning losses later in the day. Two-year Treasury yields edged up to 0.55%, after falling 14 basis points last Friday in the most significant drop since March last year. Fed Fund Futures had pushed the first rate rise out by a month or so. Oil prices also bounced $ 3 a barrel to recoup some last Friday’s shellacking, while the safe-haven yen took a breather after its run higher. Singapore Capital Economics Economist Marcel Thieliant told Al Jazeera the implications of the variant for the regional economy were not clear-cut. “A more transmissible variant could prompt even more disruptions and restrictions to domestic activity, particularly in China given its zero-Covid strategy,” Thieliant said. “At the same time though, Asian exporters would benefit if the rest of the world imposes renewed restrictions on services spending and goods spending therefore remains strong.” (Al Jazeera)


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