Asian markets plummet as China fully commits to a zero-COVID policy

Asian markets plummet as China fully commits to a zero-COVID policy

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Hong Kong’s benchmark Hang Seng Index (HSI) almost 4% drop — Asian markets are leading the losses and are set to record their worst daily decline in a month. the craftsman saw The Hang Seng Tech Index plunged 5%, leading to a sharp sell-off.
Benchmarks in Mainland China Shanghai Composite Index (SHCOMP) The Shenzhen Component Index, a technology-focused company, all fell 2.3%.
South Korea KOSPI (KOSPI) India’s Sensex were all down more than 1%. Japan’s Nikkei (N225) It opened lower but reversed the loss later in the market. Finally, it rose 0.9%.

In the foreign exchange market, the Chinese yuan also fell against the US dollar, hitting its lowest level in 1.5 minutes. age. It was trading at 6.73 per US dollar on the offshore market around 9:45 a.m. Hong Kong time. It cut losses by noon and traded at 6.71.

The Japanese yen weakened to $130.6 per dollar. The Korean won was also traded at 1274 dollars per dollar.

Asia plunged after US market fell sharply Thursday marks the worst day of the year and removes all gains from Wednesday.

In addition to Wall Street influence, investors Asia is also concerned about the latest remarks from China’s top leadership.

On Thursday, President Xi Jinping told all levels of the government to “resolutely adhere to” the Zero-Covid policy. He said this at a meeting of the Standing Committee of the Politburo of the Communist Party, the country’s highest decision-making body.

“Government officials at all levels must resolutely fight any word or action that distorts, suspects or denies China’s COVID-19 control policy,” Xi said.

Yeap Jun Rong, market strategist at financial services firm IG Group, said on Friday, “This could serve to dampen hopes for a change in COVID-19 policy, suggesting that the economic recovery will remain long-term and uneven.” said.

China’s zero-COVID-19 policy has taken a toll on the world’s second-largest economy. Korea’s giant service industry in April shrinks at the second fastest rate Records as Covid lockdown hit businesses. The manufacturing sector also contracted last month, causing the economy to retreat.

Nicole Goodkind of CNN Business contributed to this report.

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