China covid cases spike, supply chain risks weighing on risk sentiment

Reuters states that mainland China reported 3,602 new confirmed coronavirus cases on March 14, the national health authority said on Tuesday, compared with 1,437 a day earlier.

''Of the new cases, 3,507 were locally transmitted, the National Health Commission said, compared with 1,337 a day earlier.The number of new asymptomatic cases, which China does not classify as confirmed cases, stood at 1,768 compared with 906 a day earlier. There were no new deaths, leaving the death toll unchanged at 4,636.As of March 14, mainland China had confirmed 120,504 cases.''

Meanwhile, China’s government has ordered a province of 24 million people into lockdown as it tries to contain the new outbreak that has spread to multiple locations. The risk to markets is that the lockdowns could trigger shock waves across global supply chains. 

''Another major port lockdown in China could have a ‘phenomenal’ impact on global supply chains still recovering from two years of pandemic-related setbacks. Strict virus-containment efforts by local governments will weigh on cargo movement inside and out of China while raising shipping prices, logistics experts say,'' the South China Morning Post wrote.