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Asian stock markets fall as traders keep an eye on the Europe virus

 


The impact of an increase in coronavirus cases in Europe, as well as anti-disease controls that threaten to stymie trade and travel, were factors in the decline in Asian stock markets on Friday morning.

 

Shanghai, Tokyo, Hong Kong, and Sydney were all hit by a slump in the stock market. In the United States, Thursday was a national holiday.

 

Austria implemented a 10-day nationwide lockdown after the number of daily virus deaths tripled, and Italy placed restrictions on the activities of those who had not been vaccinated. The United States government advised Americans to avoid traveling to Germany and Denmark. Morocco has grounded flights from France after the country's daily new cases surpassed 30,000 for the first time.

 

"Traders will be paying close attention to the situation in Europe as a result of the new COVID wave," according to Anderson Alves of ActivTrades in a report published today. In the words of Alves, the Chinese government's restrictions on access for shipping crews are "prolonging a crisis" in international trade.

 

In the meantime, the Shanghai Composite Index fell 0.4 percent to 3,569.86, while the Nikkei 225 index in Tokyo fell an unusually large 2.5 percent to 28,779.03. The Hang Seng index in Hong Kong fell 1.9 percent to 24,260.94 points.

 

In Seoul, the Kospi index fell by one percent to 2,949.71, while the S&P-ASX 200 index in Sydney fell by one percent to 7,301.90. Markets in New Zealand and Southeast Asia have also seen declines in recent months.

 

The closing price of the S&P 500 index on Wednesday was 0.2 percent higher than the previous day. United States stock markets are scheduled to reopen on Friday for a shorter trading session than they were closed on Thursday.

 

In response to higher inflation, Federal Reserve officials stated in the minutes of the October meeting, which were released this week, that they expected to raise interest rates sooner than previously planned in response to the inflationary threat.

 

Firm corporate earnings in the United States and signs that the global economy was recovering from last year's record-setting decline in activity caused by the pandemic had given the financial markets cause for optimism. As a result of the Federal Reserve and other central banks' loose credit policies, stock prices have risen significantly.

 

Investors are concerned that, as a result of higher-than-expected inflation, central bankers will be forced to withdraw stimulus earlier than planned. Earlier this year, the Federal Reserve stated that it expected to keep interest rates at historically low levels until late next year.

 

Energy markets: In electronic trading on the New York Mercantile Exchange, benchmark US crude fell $1.68 to $76.71 per barrel, bringing the price of benchmark US crude to $76.71. Brent crude, the international benchmark for oil prices, fell $1.29 to $79.63 a barrel in London, according to the International Energy Agency.

 

The dollar was trading at 114.62 yen on Friday, down from 115.36 yen earlier in the day. The euro gained ground against the dollar, rising to $1.1224 from $1.1221 earlier this week.

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