Asian Stock Market: Trades lower amid Delta variant jitters
- Asian stocks edge lower on Tuesday as investors remained pessimistic on Delta spread.
- RBA keeps the cash rate unchanged at a record low of 0.1%.
- US accuses China of quietly issuing new procurement guidelines.
Most of the Asia-pacific stocks prints losses on Tuesday on the rapid spread of the Delta variant across the globe.
MSCI’s broadest index of Asia-pacific shares outside Japan fell 0.56%.
The Shanghai Composite Index lost 0.6% on the fear of the spread of coronavirus infections from the coast to inland cities.
Japan’s Nikkei 225 fell 0.4% amid worries over the rising COVID-19 infections. Japan extended the state of emergency in Tokyo until August 31. The government said it will induce tighter border controls for travellers from three US states.
Hong Kong’s Hang Seng Index fell 0.83%, Kospi gained 0.23%.
The ASX 200 lost 0.25% as investors digested the Reserve Bank of Australia dovish outlook on interest rates and growth. RBA left its key rates unchanged at record low levels at 0.10% on Tuesday.
The US Dollar Index remained steady at 92.03 up 0.03%.
In the recent development, US sources told Reuters that the Chinese government quietly issued new procurement guidelines in May to set new ‘buy Chinese’ targets for state companies. Adding another trail of tensions amid worsening Bejing-Washington bilateral relations.
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
