Asian shares mostly fall as tech stocks slump on Wall Street
TOKYO (AP) — Asian benchmarks mostly slipped Wednesday as technology shares in the region echoed a similar drop in the sector on Wall Street.
Japan's benchmark Nikkei 225 inched up 0.1% to finish at 29,332.16. Australia’s S&P/ASX 200 dipped 0.3% to 7,565.80. South Korea’s Kospi dropped 1.3% to 2,950.71. Hong Kong’s Hang Seng shed 1.3% to 22,985.05, while the Shanghai Composite lost 1.0% to 3,596.03.
Worries continue about COVID-19, as reports of the more contagious omicron keep growing in the region.
In Japan, many people are not heeding warnings to take precautions and crowds have been out at levels close to pre-pandemic levels in Tokyo, where booster shots have barely gotten started. Prime Minister Fumio Kishida has promised to speed them up, starting with medical professionals.
“The region may continue to see increasing omicron virus spreads ahead, but recent manufacturing PMIs seem to be holding up for now. The risk may lie in any further restriction measures, which could cloud the services sector outlook, along with disruption to supply chains,” said Yeap Jun Rong, market strategist at IG in Singapore, referring to purchasing manager indexes, an economic indicator on the manufacturing and service sectors.
Analysts expect trading in Asia to stay choppy for some time. Reported daily COVID-19 cases are still small, compared to Europe and the U.S. But the surges are coming quickly, topping 1,000 in Japan recently.
Expert opinion is divided among those who think omicron may set off fewer serious illness and those who advise more caution. Any restrictions on business activity will be sure to weigh on the recovery that all nations are counting on to happen soon.
“Global markets seem to be writing off Omicron as an existential threat, with some suggesting that the...
