Covid-19 blow to Chinese markets

While the Asian stock markets followed a positive course with the expectations that the US Federal Reserve (Fed) could slow down the rate of increase in the monetary policy, the Chinese stock markets diverged negatively.

The People’s Bank of China (PBoC) reported that banks may reduce the reserve adequacy ratio and that steps to support the economy may intensify. Despite the aforementioned pigeon guidance, Chinese stock markets declined due to the ongoing new type of coronavirus (Kovid-19) epidemic in the country.


According to the macroeconomic data announced today in Japan, the manufacturing industry PMI dropped below 50 for the first time since January 2021 with 49.4, indicating a contraction in the manufacturing industry, while the leading index rose to 97.5.

On the other hand, the Central Bank of South Korea increased the policy rate by 25 basis points to 3.25 percent in line with the expectations.

With these developments, Shanghai composite index in China decreased by 0.25 percent to 3.089 points and Kospi index in South Korea increased by 0.96 percent to 2,441 points.

In Japan, the Nikkei 225 index increased by 0.95 percent to 28,383 points, while the dollar/yen parity is trading at 139.00, just below the previous closing level.

Hong Kong’s Hang Seng index rose 0.76 percent to 17,657 points, while India’s Sensex index rose 0.6 percent to 61,878 points.



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