Asia falls, ‘crash’ in Hong Kong – Shanghai amid new lockdown in China

Asian-Pacific stock markets are declining, despite the escalation of international oil prices, as well as the war in Ukraine, and the forthcoming meeting of the Federal Reserve monetary policy committee, which will decide on the issue of interest rates. create nervousness in the investment world.

Investors are still trying to trace the economic consequences of the war that began with Russia’s invasion of Ukraine, as well as whether they will reshape the central banks’ strategy for tackling inflation. In China, an important factor is the new lockdowns imposed in China to deal with new outbreaks of the coronavirus pandemic.

The Hong Kong Stock Exchange is sinking to a six-year low as its neighboring Chinese city of Shenzhen went under lockdown due to one of the worst COVID-19 outbreaks in the country in two years.

On the board, the Japanese Nikkei gained 0.15%, to 25,346.48, with the South Korean KOSPI to record losses of 0.91%. In Hong Kong, the Hang Seng “crushed” by 5.98%, while in mainland China o Shanghai declines by 4.95% and the Shenzen by 4.36%. In Taiwan, the Taiwan Weighted closed with losses of 1.95%, while in Australia, the S & P / ASX 200 closed with losses of 0.73%.

Oil prices fell below $ 100 a barrel on Tuesday, hitting at least $ 130 a barrel last week, removing some of the worst-case global inflationary pressures. of the last 4 decades.

“Markets seem to be moving with a strange mix of hope, fear and uncertainty,” Mizuho Bank said in a statement.

The general belief in the market is that the Fed on Wednesday will announce an increase in its key interest rate by 25 basis points (ie by 0.25%), in the first interest rate increase since 2018.