Asian stocks fell in early trading today after mounting concerns about the deadly delta strain of the Corona virus that threatens the recovery of the global economy, which pushed risky investment assets, including oil, sharply lower.
The MSCI Asia Pacific Index excluding Japan declined by 0.29% with the Australian S&P/ASX200 index falling by 0.39%, while the Japanese Nikkei 225 index fell to its lowest value in 6 months at the opening of the trading round and continued to decline until 1.05%.
The Hang Seng and CSI300 indices also witnessed a similar decline, by 0.3% and 0.7%, respectively, and the Wall Street stock market suffered a noticeable loss, with shares declining by 2% and the Dow index recording its worst day in 9 months, coinciding with the increase in deaths from the Corona virus in the United States.
Policy makers in Beijing kept the record lending rate unchanged for corporate and household loans, despite expectations of a rate cut after the sudden drawdown of reserve stocks in banks.
Volatile investment assets have recently come under pressure from the outbreak of the delta virus in several countries, raising concerns about the re-imposition of new restrictions and the return of quarantines, which will deal a severe blow to the fragile economic recovery around the world. Read more [Japan’s Economic Growth Outlook Declines As Epidemic Restrictions Return] and [China’s Economic Recovery Slows, Investors Hope For Better Policies].
Oil prices plunged more than 6% yesterday as investors worried about future demand as well as the OPEC+ deal to boost supply volumes, read more [Oil prices Plunge 6% After OPEC+ Agreement, Covid-19 Injuries Rise].
As for the US treasury yields, on the other hand, they witnessed a new rise after their volatility yesterday, as the 10-year yields rose by 1.2087% after closing by 1.181%, a level not seen since last February, as for the Treasury yields from the two-year bonds, they increased by 0.2196%, after it was 0.21%.