China stocks slump %5 as COVID-19 cases in country increase
Asian stocks closed in the red on Monday due to rising tensions in the Russia-Ukraine war and investor concerns over the Fed’s rate hike.
The authorities’ statements pointing out that monetary policies will tighten faster than expected have kept the global risk appetite low.
The Fed is expected to increase interest rates by 50 basis points at its meetings in May, July, and September, and by 75 basis points in June.
On the other hand, the ongoing city closures due to COVID-19 in China continue to remain the most critical risk factor on a regional basis.
With these developments, the Asia Dow, which includes blue chip companies in the region, lost 77.80 points, or 2.27%, to close at around 3,446 points.
Tokyo’s Nikkei 225 stock exchange went down 514.48 points, or 1.90%, to 26,590.
The Hang Seng, the benchmark for blue-chip stocks trading on the Hong Kong stock exchange, decreased 769.18 points, or 3.73%, to 19,869.
China’s Shanghai Stock Exchange also slumped 158.41 points, or 5.13%, to close at 2,928 points.
The Indian Sensex benchmark fell 617.26 points, or 1%, to end the day at 56,579 points.
The Singapore index dropped 21.52 points, or 0.64%, to 3,339.