Asian stocks kick off week with caution as COVID-19 cases soar

SYDNEY June 28 (Reuters) – Asian stocks started the week cautiously on Monday. The Chinese market remained stable. As the number of coronavirus cases in the region over the weekend hurt investor confidence. while oil prices are at a level of 2-1, a two-year high

MSCI’s broadest Asia-Pacific index outside Japan was at 702.57 lower. Australian shares (.AXJO) fell 0.2%. South Korean benchmark KOSPI (.KS11) was virtually unchanged, as was Japan’s Nikkei (.N225. )

Investors are concerned about the surge in coronavirus infections in Asia, with Australia’s most populous city of Sydney locked down after a large number of Delta-related cases. Highly contagious strains

Indonesia is battling record cases. While the lockdown in Malaysia is set to be extended. Thailand also announced new restrictions in Bangkok. and other provinces as well

Chinese stocks hit higher, with the CSI300 index (.CSI300) up 0.2%. Data over the weekend showed Chinese industrial firms’ profit growth slowed again in May. As raw material prices skyrocket, profit margins are declining and affect factory activities.

Investors will keep a close eye on official factory activity from China on Wednesday. Manufacturing readings are expected to slow to 50.7 from 51, with the private Caixin Manufacturing PMI to follow later this week.

last week Global stocks hit record highs due to US inflation weaker than expected and news about the U.S. two-way infrastructure deal. has stimulated the risk

Infrastructure plans are worth $1.2 trillion over eight years, of which $579 billion is new spending.

An ANZ analyst wrote in a note: “Investors have been keeping a close eye on the progress of US President Biden’s bipartisan infrastructure deal. through the meeting This package could arouse great demand. This is driven by investments in renewable energy infrastructure and automotive electronics (EV).”

Oil prices climb to their highest level since October 2018 in early Asian trading. Demand growth is expected to outpace supply, and OPEC+ will be wary of returning crude from August.

Brent futures were up 12 cents to $76.30 a barrel, while U.S. crude rose 13 cents to $74.18.

On Friday, the S&P 500 (.SPX) was up 2.7 percent this week, the strongest weekly increase since early February after data showed core inflation indicators rose less than expected in the . May Allay fears that the Federal Reserve will have a sudden reduction in stimulus measures in reserves.

The Dow (.DJI) climbed 0.7%, while the high-tech Nasdaq (.IXIC) fell 0.06% after holding near the previous session’s record high.

At the end of the week, the US employment report will be released. closely watched in June This could indicate a strong demand for labor.

Yields on the 10-year U.S. Treasury rose above 1.50% to close in the week of the highest interest rate increase since March.

Global financial and fiscal stimulus to combat the COVID-19 pandemic resulting in an increase in financial assets Although the recovery between different regions will not recover equally

Boston Federal Reserve Chairman Eric Rosengren has warned that financial security risks posed linked to a low interest rate environment. It could lead to another recession that hampered the recovery of the labor market and hindered the return of peak employment.

On the currency, the US dollar was slightly higher at 91.846 against a basket of other currencies.

The yen weakened to 110.65 against the dollar. And the euro was lower at $1.1925.

A strong dollar led gold to close down 0.4% at $1,771.9 an ounce.

Compiled by Srinawarat

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