Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

China, Australia Stocks Rattled by new COVID Lockdown

Published 08/12/2022, 12:03 AM
Updated 08/12/2022, 12:16 AM
© Reuters.

By Ambar Warrick Chinese and Australian stocks fell on Friday as a COVID-19 lockdown in commodities hub Yiwu rattled sentiment, while most other Asian stocks trended higher on more signs of easing U.S. inflation. 

As of 23:32 ET (03:32 GMT), China’s bluechip Shanghai Shenzhen CSI 300 index fell 0.2%, while the Shanghai Composite index fell in a similar band.

Sentiment towards the country was dealt a new blow by a three-day lockdown in Yiwu, a major commodity and manufacturing hub in the Zhejiang Province. The city was placed in a partial lockdown earlier this week, and was put in a complete lockdown on Thursday, The South China Morning Post reported. 

China’s economy is still reeling from a series of economically damaging COVID lockdowns imposed earlier this year, with investors wary of any more such measures. A lockdown in a major commodity hub like Yiwu could spell more trouble for China's beleaguered industrial sector, which unexpectedly shrank in July. 

Manufacturing stocks were among the worst performers on the bluechip index on Friday. 

Australian stocks fell 0.8% on the news, given that several major miners in the country depend on China as an export destination. BHP Group Ltd (ASX:BHP), the world’s largest miner, dropped 0.7%, while Rio Tinto Ltd (ASX:RIO) traded flat. 

Most other Asian stocks rose on Friday, as more signs of a slowdown in U.S. inflation boosted sentiment. Data on Thursday showed the producer price index (PPI) unexpectedly shrank in July, a day after another reading showed the consumer price index (CPI) sank more than expected. 

Still, gains were tempered by hawkish comments from Federal Reserve officials, who posited that interest rates could rise by as much as 1% by the end of the year. 

Japan’s Nikkei 225 index rallied 2.5% in catch-up trade after a holiday on Thursday. Hong Kong’s Hang Seng index added 0.2%. 

Malaysian stocks rose 0.2%, after data showed the country’s economy grew 8.9% in the second quarter, far more than expectations of 6.7%. 



Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.