BANGKOK – Asian stocks were lower on Monday as investors distrusted the recent rise in coronavirus cases in many places as vaccination efforts make little progress.
Earlier in trading Monday, the Nikkei 225 NIK,
in Tokyo it lost 0.5% and South Korean Kospi 180721,
exceeded 0.1% more. In Hong Kong, the Hang Seng HSI index,
fell 1% and Shanghai SHCOMP composite index,
it sank 0.8%. S & P / ASX 200 XJO from Australia,
gave up 0.5%. Stocks increased in Taiwan in 1999,
but it fell in Singapore ITS,
and Indonesia JAKIDX,
Shares in SK Innovation Co. 096770 of South Korea,
jumped 14% after reaching a settlement in a trade dispute with rival LG Energy Solution. The companies pledged to work together to strengthen the EV battery supply chain in the U.S., advancing plans to build batteries in Georgia, in what President Joe Biden called “a victory for American workers and the American automotive industry “.
Shares of Chinese e-commerce giant Alibaba 9988,
were 6% higher after the company said it was fined $ 2.8 billion for anti-competitive conduct. The penalty was lower than feared, as the ruling Communist Party tightens control over the fast-growing technology industries.
The declines in Asia followed a strong end last week on Wall Street, where gains in technology and healthcare stocks pushed the S&P 500 and Dow Jones Industrial Average to record highs.
A moderation in bond yields has helped restore confidence that the Federal Reserve will move forward soon to raise interest rates to keep inflation under control as the economy recovers from pandemic shocks.
But in Asia, a resurgence of infections is undermining confidence in that trajectory.
The top Chinese disease control official said over the weekend that the effectiveness of Chinese coronavirus vaccines was low and the government is considering mixing them to get a boost. It was an infrequent admission and comes as the country continues to fight outbreaks of the virus that was first reported in the central Chinese city of Wuhan.
Japan struggles to control infections as it prepares to host the 2020 Tokyo Olympics. Thai health officials warn that the daily rate of new infections could exceed 28,000 if urgent measures are not taken to counter the country’s worst outbreak until now.
“The launch of the vaccine is still slow in Asia, but what is most worrying is a renewed divergence in virus loads, with second waves in India, the Philippines and now Thailand,” said Stephen Innes, of Axi, in a report. This “continues to tarnish the global travel prospects,” he said.
On Friday, the S&P 500 SPX,
rose 0.8% for its fourth record this week, closing at 4,128.80. The Dow DJIA,
gained 0.9% to 33,800.60, while the Nasdaq COMP composite
rose 0.5% to 13,900.19.
The yield on the ten-year U.S. Treasury bill, which influences mortgage and other loan interest rates, remained at 1.65%. It finished at 1.66% on Friday and had reached 1.75% last Monday.
In other operations, US reference crude oil CLK21,
collected 4 cents to $ 59.36 a barrel in e-commerce on the New York Mercantile Exchange. It lost 28 cents on Friday, to $ 59.32 a barrel. Brent cru BRNM21,
the international standard, earned 4 cents to $ 62.99 per barrel.
The US Dollar USDJPY,
bought 109.54 Japanese yen, up from 109.71 yen on Friday.