Asian market were largely down on Monday after China renewed fresh COVID-19 curbs lead to Shenzen under complete lockdown and as traders brace for Federal Reserves to increase benchmark interest rates this week.
The CSI300, HSI, SET and KOSPI is closed down by 3.06%, 4.97%, 0.59% and 0.94% respectively. The TOPIX close marginally in the positive by 0.71%.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped by1.67%.
Amid fresh lockdown in China along with lingering regulatory crackdown by Beijing and U.S. on Chinese tech firms, Hang Seng Tech Index inched down by 11.03%.
European benchmark however jumped by more than 1% on reports dialogue between Ukraine-Russian in progressing.
Contracts on the S&P 500 and Nasdaq 100 nudged higher, signaling some calm may return to U.S. markets after last week’s volatile trading.
The 10-year Treasury yield climbed to its highest level since July 2019. The flattening of the U.S. treasury yield crude and global stock markets dropping by 12% this year, single underlying worry on higher input costs largely driven by soaring energy prices which could potentially throttle the global economic recovery.
“We are experiencing extraordinary volatility in global equities compounded by wavering market sentiment, and the risk of recession intensifies on spiraling commodity prices,” Louise Dudley, portfolio manager for global equities at Federated Hermes, wrote in a note.
“We expect ongoing swings in the short term as geopolitical uncertainty over Russian crude persists.”
Crude oil dropped to pre-war level after Moscow-Kyiv showed resilience in war halt talks despite intensified air strikes by Russia. The WTI is trading at $104 per barrel while Brent futures are trading at 108 per barrel.
