· Asian stocks dip to one-week lows as infection fears curb vaccine optimism
Asian stocks retreated on Tuesday as worries about increasing COVID-19 deaths and lockdowns overshadowed optimism about the roll-out of coronavirus vaccinations, just days after indexes hit record highs.
Markets showed little reaction to China’s industrial output, which grew in line with expectations in November, expanding for an eighth straight month as an economic recovery gathered pace.
The number of coronavirus deaths in the United States crossed 300,000 on Monday as the hardest hit nation started its first vaccine inoculations, while tighter COVID-19 restrictions were imposed on London.
Most Asian markets retreated, with MSCI’s index of Asia-Pacific shares outside Japan falling 0.6% to 637.8, the lowest in more than a week after having hit a string of record highs in recent weeks.
· Nikkei ends lower as rising COVID-19 infections sap risk appetite
Japanese shares ended weaker on Tuesday as rising COVID-19 infections sapped investors appetite for risk assets and forced the government to suspend its domestic tourism promotion campaign, hitting airlines and other travel-related stocks.
The Nikkei share average dropped 0.17% to 26,687.84. The broader Topix lost 0.47% to 1,782.05, with decliners outnumbering advancers by a ratio of 3 to 2.
Investors are locking in profit from recent gains, ahead of policy announcements later this week by the U.S. Federal Reserve and the Bank of Japan.
Concerns about increasing COVID-19 infections and lockdowns around the world overshadowed optimism over the rollout of coronavirus vaccinations.
Tourism-related shares took a hit after Japanese Prime Minister Yoshihide Suga said the travel subsidy programme dubbed “Go To Travel” would be suspended nationwide around the New Year to contain mounting COVID-19 cases.
· Asia-Pacific stocks dip as coronavirus resurgence concerns drag on vaccine optimism
Mainland Chinese markets were mixed on the day: The Shanghai composite dipped fractionally to 3,367.23 while the Shenzhen component gained 0.52% to 13,763.31. Hong Kong’s Hang Seng index was about 0.6% lower, as of its final hour of trading.
China’s industrial production grew 7% year-on-year in November, the country’s National Bureau of Statistics announced Tuesday. That was in line with expectations from a Reuters poll. Meanwhile, retail sales in China increased 5% in November as compared with a year ago, missing forecasts for a 5.2% increase by analysts in a Reuters poll.
· European markets open mixed as coronavirus, Brexit remain in focus
European stocks opened flat on Tuesday as post-Brexit trade deal negotiations and the latest coronavirus developments continue to dominate market attention.
The pan-European Stoxx 600 hovered around the flatline in early trade, with autos climbing 0.9% to lead gains while telecoms slipped 0.3%.
Coronavirus developments are also weighing on market sentiment with Germany and the Netherlands announcing tighter restrictions over Christmas in a bid to curb a sharp rise in infections.
Reference: CNBC, Reuters
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