TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
China stocks succumb to COVID outbreaks; coal shares lead the decline
Change Size
People walk past a display showing the Hang Seng Index in Hong Kong, China, on April 22, 2022. (AFP/Isaac Lawrence )
C
hina stocks dropped on Tuesday, as more cities tightened COVID-19 restrictions in response to rising cases, fuelling fears of a further economic slowdown.
Investors were also concerned about tightening global monetary policies, which could drain liquidity from Chinese markets and limit room for China to ease its policy further.
The CSI 300 Index had fallen 0.5 percent by the end of the morning session, while the Shanghai Composite Index was down 0.6 percent.
The Hang Seng Index dropped 0.9 percent, while the Hang Seng China Enterprises Index was down 1 percent.
Other Asian stock markets attempted to steady as investors turned their focus to this week's US labor market report to gauge if interest rate hikes that have been priced in around the world are justified.
Authorities in China's southern city of Shenzhen shut the world's largest electronics market of Huaqiangbei on Monday to curb an outbreak of COVID-19.
"Despite a decline in headline COVID cases, the actual COVID situation in China might be worsening," Nomura analysts said in a note. "Markets could once again be hit in the next couple of weeks, likely triggering another round of cuts [in GDP forecasts] by economists on the street."
Energy companies slumped 4.3 percent, with coal miners shedding 5.4 percent to lead the decline.
Energy stocks have gained more than 12 percent so far in the month, amid a supply shortage due to China's most severe heatwave in decades.
Real estate stocks rose 1.5 percent after Caixin reported China would issue 200 billion yuan ($29 billion) in special loans to help developers finish stalled housing projects.
Tech giants listed in Hong Kong lost 1.7 percent.
China and the United States made a breakthrough in an audit deal, but legal experts and China watchers warn the two sides could still clash over how the accord is interpreted and implemented.
