HONG KONG- Asian stocks slipped on Tuesday, as the Delta coronavirus variant spread in key markets in the region and put Chinese authorities on high alert, rattling investor confidence.
Trade in Asia faced a weaker lead from Wall Street after investors there considered the impact the increasing number global cases of Delta could have on global economic growth.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.40 percent in early trading.
Japan’s Nikkei was off 0.85 percent in early trade.
China’s blue chip index CSI300 shed 0.80 percent while Hong Kong’s Hang Seng Index fell 0.83 percent.
Australia’s benchmark index, the S&P/ASX200 is off 0.25 percent, having reached a record on Monday after Square Inc announced a $29 billion offer for buy-now-pay-later firm Afterpay Ltd.
The Reserve Bank of Australia is expected to leave rates unchanged at 0.10 percent when it meets later in the day, but reverse the July bond tapering decision due to the lock downs in Sydney and Brisbane caused by the expanding Delta variant.
In China, the spread of the Delta variant from the mainland’s coast to its inland cities prompting authorities to implement strict counter epidemic measures to bring the outbreak under control.
“Millions have been locked down in China following the worst outbreak since the COVID crisis began and given risks to supply chains this might have more of an effect on the global economy,” said Elizabeth Tian, Citigroup’s equity derivative solutions director. – Reuters
