Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Asian shares fall as markets watch omicron, central banks

Asian shares are mixed, with Shanghai gaining after reopening from the Lunar New Year holidays

Via AP news wire
Sunday 06 February 2022 22:57 EST
Hong Kong Financial Markets
Hong Kong Financial Markets (Copyright 2022 The Associated Press. All rights reserved.)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Asian shares fell Monday, though Shanghai s benchmark jumped after markets reopened from the Lunar New Year holidays.

Tokyo Seoul Sydney and Hong Kong declined despite an unexpectedly positive U.S. jobs report on Friday.

Investors were watching for moves by central banks in India, Indonesia and Thailand, which are all set to decide on monetary policy within the week.

This week brings earnings reports from some of the regionā€™s biggest companies, including Japanese automakers. They may provide updates on shortages of computer chips and other disruptions and pressures related to the pandemic.

Japanā€™s benchmark Nikkei 225 lost 0.8% in morning trading to 27,215.19. Australiaā€™s S&P/ASX 200 slipped 0.2% to 7,107.90. South Koreaā€™s Kospi declined 0.9% to 2,725.32. Hong Kongā€™s Hang Seng dipped 0.4% to 24,465.89, while the Shanghai Composite gained 1.9% to 3,424.02.

Surging COVID infections in the region because of the omicron variant are also weighing on sentiment. Much of Japan is under a government-backed request for restaurants and bars to close early to slow the explosive growth in cases and hospitalization.

Although about 80% of the Japanese have gotten two shots, only about 5% have received the booster. Prime Minister Fumio Kishida is expected to announce an initiative to ramp up inoculations, Japanese media reported.

Wall Street closed out a mostly upbeat week with a mixed finish. Treasury yields surged after the blowout U.S. jobs report raised investors' expectations that the Federal Reserve may soon start raising interest rates sharply.

The S&P 500 settled for a 0.5% gain, closing at 4,500.53. The Dow Jones Industrial Average slipped 0.1%, to 35,089.74 after a last-minute burst of selling. The Nasdaq composite rose 1.6% to 14,098.01. The three indexes posted a weekly gain for the second week in a row.

Smaller stocks in the Russell 2000 rose 0.6% to 2,002.36.

The Labor Department said employers added 467,000 jobs last month, triple economistsā€™ forecasts. Some economists were even expecting a loss of jobs amid January's surge in coronavirus infections because of the omicron variant.

Treasury yields leaped immediately following the jobs reportā€™s release, tracking forecasts that the Fed will hike short-term interest rates more aggressively than earlier expected.

ā€œWith the release of most major tech earnings, the Fedā€™s policy outlook may once again take center stage in the new trading week," Jun Rong Yeap of IG said in a commentary.

Market watchers also will be eyeing fresh U.S. inflation data and jobless claims, due on Thursday.

The 10-year Treasury was at 1.90% on Monday, down from 1.92%.

In energy trading, benchmark U.S. crude fell 53 cents to $91.78 a barrel in electronic trading on the New York Mercantile Exchange. It surged $2.04 on Friday to $92.31. Brent crude, the international standard, added 3 cents to $93.30 a barrel.

In currency trading, the U.S. dollar edged up to 115.33 Japanese yen from 115.28 yen. The euro cost $1.1430, down from $1.1461.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in