Asia markets fall on Omicron, Fed tapering worries

Asia markets fall on Omicron, Fed tapering worries

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Hong Kong: Asian markets generally fell in early trading on Tuesday, as investors were concerned about the Omicron coronavirus variant and the central bank’s upcoming measures to curb rising inflation.

As policymakers on both sides of the Atlantic deal with rising inflation, the Fed is scheduled to announce its latest interest rate decision on Wednesday, and the European Central Bank (ECB) will announce the next day.

After last week’s strong performance, the stock market plummeted this week, as the United Kingdom became the latest country to increase its response to the Omicron strain, and China reported its first case of this variant—many people worry that this may jeopardize the global recovery.

Following these concerns, Tokyo fell in early trading, as did Seoul and Sydney. Taipei and Jakarta rose slightly.

After the United States was blacklisted for allegations of genocide in Xinjiang, Chinese artificial intelligence startup SenseTime decided to postpone a US$767 million initial public offering in the city, and Hong Kong’s stock price fell.

This news shows that as the relationship between the world’s two largest economies deteriorates, investors are facing the risk of competing sanctions.

After rising by about 8% last week, concerns about the coronavirus also caused oil prices to fall.

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