Asian Stocks Mix Over China’s COVID-19 Flare-Ups

© Reuters.

By Zhang Mengying – Asia Pacific stocks were mixed on Tuesday morning as investors monitored China’s COVID-19 flare-ups.

Japan’s jumped 1.78% by 8:45 PM ET (1:45 AM GMT).

South Korea’s gained 0.33%.

In Australia, the rose 1.35%. Australian yields rose, as the Reserve Bank of Australia Governor Philip Lowe reiterated that further interest rate hikes likely loom.

Hong Kong’s was up 0.98%.

China’s was down 0.31% while the was down 0.38%.

Investors are now monitoring China’s COVID-19 flare-ups as it saw outbreaks in cities like Shenzhen.

The was up 0.22% while was up 1.24%.

The benchmark 10-year yield rose to about 3.28%.

Adding to investors’ concerns, St. Louis Fed President James Bullard warned that U.S. inflation expectations could “become unmoored without credible Fed action,” while former Treasury Secretary Lawrence Summers suggested that to counter price pressures, the U.S. jobless rate would need to rise above 5% for a sustained period.

“There might be a narrative that we’ve hit bottom, we are oversold, the Fed is taking inflation seriously and that might be slightly bullish in the interim,” Optimal Capital director of strategy Frances Stacy told Bloomberg.

In Europe, European Central Bank President Christine Lagarde reiterated that officials intend to deliver interest rate hikes in July and September despite growing concerns over financial-market tensions.

Fed Chair Jerome Powell will testify to the House on Wednesday and Thursday.


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