Asian stocks: Covid-19 worries send shares in Shanghai and Hong Kong down

Stocks in China and Hong Kong closed sharply lower on Tuesday (15), amid concerns that new outbreaks of Covid-19 will once again compromise Chinese economic activity.

The Hang Seng led losses in Asia, with a drop of 5.72% in Hong Kong, at 18,415.08 points. In mainland China, the Shanghai Composite was down 4.95% to 3,063.97 points, while the less comprehensive Shenzhen Composite was down 4.56% to 2,013.37 points.

In recent days, the Chinese government has determined the confinement of the city of Shenzhen, a financial and technological hub of 17.5 million inhabitants, and has adopted a series of restrictions in Shanghai, in the face of the increase in cases of covid-19.

China’s move threatens to derail its economic recovery after data showed a much stronger-than-expected performance on industrial production, retail sales and fixed asset investment during the first quarter of the year.

Elsewhere on the mainland, Japan’s Nikkei index rose by a modest 0.15% in Tokyo to 25,346.48, thanks to stocks in the automotive and financial sectors.

The South Korean Kospi fell by 0.91% in Seoul, to 2,621.53 points, while the Taiex also recorded a decrease, of 1.95%, in Taiwan, to 16,926.06 points.

Developments from the Russian-Ukrainian war and the expectation that the Federal Reserve (Fed, the US central bank) will start raising interest rates this week help to keep business anxiety in the Asian region.

In Oceania, the Australian stock exchange was also in the red, pressured by shares of mining and oil companies. The S&P/ASX 200 is down 0.73% in Sydney at 7,097.40.

With information from Dow Jones Newswires