HSI Joins Asian Retreat, Shanghai Edges Up

Hong Kong shares finished Thursday morning with losses following another retreat on Wall Street as virus cases soared in the United States and Europe, forcing governments to impose lockdowns and strict containment measures.

The Hang Seng Index fell 0.9 percent, to 24,478.

On the mainland, the Shanghai Composite Index reversed its course and rose 0.2 percent, to 3,275 while the Shenzhen Composite Index rose 0.5 percent, to 2,250 after an initial fall.

Japan's Nikkei 225 fell 0.2 percent while South Korea's the Kospi lost 1 percent. Australia's S&P/ASX 200 declined 1.4 percent while Taiwan also was down.

Most regional stocks were following the overnight declines in the US and European markets after worries of Covid resurgence spooked the investors as more countries imposed tougher restrictions.

In Asia, some countries appear to be keeping the pandemic in check, while caseloads surge in others. India surpassed 8 million confirmed Covid-19 cases, second only to the US, with nearly 8.86 million. Indonesia and the Philippines are struggling to keep outbreaks in check, and fresh clusters of cases are being reported in Japan.

“When it rains, it pours, particularly if you are following today’s Covid-19 headlines," Edward Moya of Oanda said in a commentary. “An overvalued stock market was ripe for a pullback, but when you focus on Covid-19 headlines, it looks more like panic-selling."

The Bank of Japan kept its ultra-loose monetary policy unchanged in a policy meeting that ended Thursday.

But it downgraded its outlook for the economy, saying that while conditions will eventually improve, “risks to both economic activity and prices are skewed to the downside, mainly due to Covid-19". (AFP)

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