(ATF) Hong Kong: Asian markets were broadly lower as investors assessed the impact of a second wave of Covid-19 infections that is threatening further disruptions in the region’s major economies, Japan and India.
Jefferies has cut its growth forecast for India, the world’s sixth-largest economy, for the first two quarters of the current financial year ending March 2022, reducing the financial year growth forecast to 11.0%, down 2.2 percentage points.
“Activity levels deteriorate significantly in April,” said Jefferies analysts Mahesh Nandurkar and Abhinav Sinha in a note while observing that urban activity had seen significant declines. “With the expansionary budget already presented, very little room exists for the govt to increased spending although certain adjustments would be possible.”
Japan emergency
Japan’s Nikkei 225 index tumbled 2.03% underperforming the region after a report the government plans to declare a state of emergency in Tokyo, Osaka, Kyoto and Hyogo, flattening the hopes of an early economic recovery.
“While together those four prefectures only generate a third of national output, the experience during the second state of emergency suggests that such declarations will depress consumer spending nationwide,” said Tom Learmouth, Japan Economist at Capital Economics.
Australia’s S&P ASX 200 dipped 0.29%, Hong Kong’s Hang Seng index slid 1.76% but China’s CSI300 inched up 0.30% boosted by banking, healthcare stocks after strong quarterly results. Regionally, the MSCI Asia Pacific index tumbled 1.63%.
Oil demand
These lockdowns have slammed the forecasts for oil demand pressuring crude prices. West Texas Intermediate crude slipped 0.4% to $62.44 a barrel and Brent crude dipped 0.3% to $66.40 a barrel.
That reduced the pressure on inflation and brought out bids on US Treasuries. The 10 year yield fell 2 basis points to 1.58%.
The dollar flatlined but gold prices jumped rising 0.4% to $1,778 per ounce.
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Asia Stocks
- Japan’s Nikkei 225 index tumbled 2.03%
- Australia’s S&P ASX 200 dipped 0.29%
- Hong Kong’s Hang Seng index slid 1.76%
- China’s CSI300 inched up 0.30%
- The MSCI Asia Pacific index tumbled 1.63%
Stock of the Day
Chinese sportswear company ANTA Sports shares fell as much as 8.4% after its controlling shareholder’s sale of about 3.26% stake, cutting it shareholding to 47.56%, from 50.81%. The sale at a price of HK$131.48 per share, represents a 7.5% discount to their previous close.
