Asian stocks were neutral on Monday, as concerns over the spread of coronavirus infections clouded the region’s economic outlook, limiting the region’s gains.
As of midday, the Nikkei 225 index had gained little more than 0.1 percent, to 30,254.01, after early in the day zigzagging about the 30-point level. The S&P/ASX 200 index in Australia rose 0.8 percent to 7,404.30 points. The Kospi index in South Korea rose 0.2 percent to 3,131.83 points.
Asian Stocks Are Mixed As Fears Of Virus Cloud The Economy’s Outlook
According to Bloomberg, the Hang Seng Index in Hong Kong rose 0.7 percent to 24,360.55, while Shanghai Composite Index fell 0.6 percent to 3,591.49.
Following YoshihideSuga’s one-year tenure as prime minister, Japan’s governing party will conduct an election later in the week to choose its next leader. The winner will presumably replace Suga as prime minister. Despite significant differences in their positions, all of the contenders are committed to maintaining the nation’s pro-American policies.
Furthermore, they have all said that they would increase government expenditure in an effort to stimulate growth as in the world’s third-biggest economy.
According to analysts, the “tankan” economic survey for the third quarter, which is coming out Friday, is expected to indicate a worsening in business conditions as a result of numerous interruptions to supply chains and the reemergence of COVID-19 outbreaks in a number of areas.
Despite the fact that some countries have removed COVID-19 restrictions and therefore are gradually returning to “normal” life, there are still concerns in Asia about the possibility of new outbreaks of the virus since vaccine rollouts in certain countries have been slower than in the West.
Further COVID-19 limitations were implemented in Singapore in an effort to slow the virus’ transmission since daily new cases had surpassed the city-previous state’s high point, which occurred in April 2020.
A bumpy week of trading ended with a mixed finish for the main stock indexes, but the Stamp 500 managed to post its first weekly gain in 3 weeks, as Wall Street wrapped off a turbulent week of trading.
The Stamp 500 gained 0.1 percent to 4,455.48, bringing it within 1.9 percent of its all-time high set on Sept. 2 of this year. The Dow Jones Industrials rose by 0.1 percent to 34,798 points on Wednesday. A little decline of less than 0.1 percent brought the Nasdaq to 15,047.70, whereas the Russell 2000 fell by 0.5 percent to 2,248.07.
The stock market in the United States has had a difficult month, and investors may be in for further volatility as a result of a number of worries, including COVID-19 as well as its lasting effect on the economy, as well as a sluggish rebound in the job sector.
Global markets are still being weighed down by concerns about the struggling Chinese property developer Evergrande.
Some Banking systems on Friday revealed the amount of money owed to Evergrande by the company in an attempt to allay concerns of financial instability as the company struggles beneath $310 billion in debt.
In energy trading, the Nymex Exchange reported that benchmark oil for the United States gained 92 cents to $74.90 per barrel in electronic trading. On Friday, the price of a barrel of oil increased by 68 cents to $73.98.