As a result of the new Covid variant, Asian stocks and oil prices have plummeted.


As a result of the new Covid variant, Asian stocks and oil prices have plummeted.

On Friday, Asian markets and oil prices fell, while safe-haven assets gained, as experts warned that a new Covid-19 type, which could be more infectious than Delta and resistant to medicines, could wreak havoc on the global recovery.

The B.1.1.529 strain has been blamed for a spike in new cases in South Africa, and it has already appeared in Hong Kong. The World Health Organization will meet later today to decide if it should be classified as a variety of “interest” or “worry.”

Following the discovery of the South African variety, the United Kingdom and Israel have imposed travel bans on the country and five others in southern Africa, in order to prevent the virus from gaining a foothold in populations and spreading rapidly.

According to the WHO, “early investigation suggests that this variation has a substantial number of mutations that require and will undergo further study.”

The revelation has shattered Asian market confidence, which was already under strain as traders braced for the Federal Reserve to begin tightening its monetary policy to combat rising inflation.

Tokyo, Hong Kong, and Mumbai were all down more than 2%, while Sydney, Seoul, Singapore, Bangkok, Taipei, Manila, Mumbai, Wellington, and Jakarta were all down more than 1%. Shanghai suffered fewer setbacks.

Companies in the travel industry were among the hardest hit, as investors worried that governments might impose further restrictions.

Sydney-listed Qantas has dropped more than 5%, Cathay Pacific has dropped 4%, and Singapore Airlines has down more than 3%. In Hong Kong, casino operators from Macau were also pounded.

Concerns about the impact on demand if more containment measures were to be implemented also drove down oil prices, with WTI down 2.5 percent.

The selling comes as OPEC and other key producers prepare to meet next week to debate output plans, with analysts predicting that events would compel authorities to reconsider their agreement to gradually release more black gold.

According to Jeffrey Halley of OANDA, “the one bull in the china shop that could genuinely derail the global recovery has always been a new strain of Covid-19 that swept the world” and caused the reimposition of restrictions.

The increase in uncertainty pushed safe-haven currencies higher, with the yen, a go-to currency in times of crisis, outperforming the dollar.

The. The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.


Comments are closed.