Asian markets mixed as Delta, profit-taking offset recovery hope

Asian markets mostly up

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Hong Kong: Most Asian markets rose on Monday, but investor optimism about the global recovery was suppressed by concerns about the spread of the Delta Covid virus and Chinese regulatory crackdowns.

There are signs that U.S. lawmakers are agreeing on Joe Biden’s $1 trillion infrastructure bill, but these signs do not provide much impetus, and people are concerned about the release of U.S. employment data this weekend, because despite unemployment The rate remains high, but it is still difficult for companies to fill job vacancies.

As the latest sign of optimism in the global outlook, last week’s data showed that the US economy has returned to pre-pandemic levels — albeit at a slower rate than expected — while the euro zone’s expansion is much faster than expected.

However, observers say that as investors are increasingly worried about soaring inflation, many have warned that inflation may force the central bank to reduce ultra-loose monetary policy, so the rebound in global markets has been weakening for most of the past year.

In addition, some countries have slow vaccination plans, and the rapid spread of the Delta variant has led to the re-implementation of lockdowns and other containment measures.

In early trading, Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Manila rose, but Singapore and Jakarta fell.

“As the global coronavirus cases increase, inflation scares continue, and we enter a seasonally weak month, stocks still face the risk of short-term adjustment or volatility, but soaring corporate profits and falling bond yields in the United States are providing support,” Shane said AMP Oliver of Capital.

After the authorities began cracking down on private tuition companies and the technology and real estate industries in the country last week, nervous traders are paying close attention to China.

Although officials and official media have tried to reassure the market in the face of collapse, these moves have raised concerns that other industries may become the next.

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