Asian markets swing as traders mull virus, vaccines and stimulus

Asian markets swing as traders mull virus, vaccines and stimulus

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Hong Kong: Stock investors proceeded cautiously on Wednesday, as they weighed the hope of a long-term recovery and the urgent concerns about a surge in viral infections, strain mutations and slow vaccine launches.

There are signs that Joe Biden’s much-touted stimulus plan may face a difficult test in Congress, which has also eased people’s optimism, and after the recent global rebound, the market has increasingly discussed market adjustments. .

As the new, more easily spreading version of the coronavirus spreads rapidly among the population, governments are forced to adopt strict containment measures, and the assignment of jabs is hindered.

Biden said Tuesday that vaccinating people is a “wartime task,” but he added that another 200 million doses of vaccine have been ordered and that by this fall, the authorities will have enough population to accommodate 300 million Americans-in fact. The entire population.

There are still concerns that the drug will be less effective against new strains-although the manufacturer has taken action to ensure that it will not.

Observers say that despite the optimistic outlook, the International Monetary Fund (IMF) has raised its forecast for global economic growth in 2021, but the first few months of this year may be painful.

Stephen Innes, Axi strategist, said: “As Covid’s concerns continue to cloud the litigation process, the market may continue to struggle for the near-term direction, which creates an unpleasant situation for both risk and health care. .”

“As the virus spreads around the world like wildfire, it is now very likely that the first quarter will become a lost quarter, and part of the second quarter will also become a lost quarter.”

He said that worries about virus mutations “will continue to linger on the cloud-shrouded market until the distribution of vaccines is eliminated and the reduced certainty of the level of infectivity can fully support the results of vaccine efficacy”.

The three major stock indexes on Wall Street all closed in red, while Asia struggled to rebound from Tuesday’s sell-off.

The Hong Kong and Shanghai stock markets fell again, and the Central Bank of China decided to withdraw billions of dollars from the banking system on Tuesday to prevent the development of asset bubbles, which were hit hard.

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