Stock indices of major Asia-Pacific countries are mainly down in trading on Monday except Japan Indicator amid a decline of Wall Street last week due to concerns about further interest rate hikes in the United States.
Investors fear that multiple key rate hikes by the U.S. Federal Reserve (Fed) and central banks in Asia and Europe to combat high inflation could push the global economy into recession, Trading Economics wrote.
By 8:17 Moscow time the value of Japanese index Nikkei 225 increased by 0.02%.
The most significant rise among the components of the indicator was demonstrated by share prices of beer producer Sapporo Holdings Ltd. (+2.9%), chemical company Teijin Ltd. (+2.8%) and insurer Tokio Marine Holdings Inc. (+2.3%).
By 8:21 Moscow time, China’s Shanghai Composite Index was down 0.7 percent and Hong Kong’s Hang Seng was down 2.1 percent.
The People’s Bank of China (NBK, the country’s central bank) kept its benchmark one-year lending rate (LPR) at 3.65% per year.
The rate for five-year loans was left at 4.3 percent per annum, the NBK said in a statement.
The regulator left the rates unchanged amid continued downward pressure on the yuan and a slowdown in economic activity amid rising coronavirus infections and new restrictions or lockdowns in a number of cities, Trading Economics wrote.
In Hong Kong, stocks of companies providing consumer goods and services declined significantly on Monday as investors’ attention shifted back to the coronavirus situation amid a rise in infections and the first report of a fatality from the effects of COVID-19 in nearly six months, Trading Economics wrote.
Hong Kong Chief Executive John Lee tested positive for COVID-19 after returning from the Asia-Pacific Economic Cooperation (APEC) summit in Thailand, the PRC Special Administrative Region government said.
According to the statement, Lee tested negative for COVID-19 all four days he was in Thailand. However, upon his arrival at Hong Kong airport, the head of the special administrative region’s administration received a positive test.
Leaders of the decline on the Hong Kong Stock Exchange include shares of restaurant chain owner Haidilao International Holding Ltd (-7.5%) and casino operators Sands China (SPB: 1928) Ltd (-7.4%) and Galaxy Entertainment Group Ltd (-7.3%).
The value of South Korea’s Kospi index by 8:15 Moscow timeframe dropped 1.3%.
One of the world’s largest chip and electronics maker Samsung Electronics Co. dropped 1.5%, while car maker Kia Corp. dropped 1.7%.
Australia’s S&P/ASX 200 index fell 0.17%.
Share prices of the world’s largest mining companies BHP and Rio Tinto fell by 2.25% and 2.3%, respectively.
