Tokyo – After a mixed finish on Wall Street on Tuesday, global equities fell almost as concerns about China lacked investor optimism.
France’s CAC 40 fell 1.4% in early trading to 6,561.06. Germany’s DAX fell 0.8% to 15,443.31. The UK FTSE 100 was down 0.4% to 7,035.80. The future of the 30 Dow Jones Industrial Averages fell 0.4% to 34,617.00, with US stocks set for a setback. The future of the S & P 500 fell 0.7% to 4,404.25.
In Asia, the Japanese benchmark Nikkei 225 fell 0.2% to close at 30,183.96. Australia’s S & P / ASX 200 fell 1.5% to 7,275.60. South Korea’s Kospi was down 1.1% to 3,097.92. Hong Kong’s Hang Seng Index was up 1.2% to 24,500.39. The Shanghai Composite Index rose 0.5% to 3,602.22.
A power crisis in some parts of China has closed factories and made electricity unavailable to some households in order to meet official energy usage targets. This could have a global impact just before the end of the year shopping season, including supplies needed for manufacturing across Asia.
This is in addition to the shortage of parts and raw materials that has already plagued the local manufacturing industry due to the supply disruption caused by the coronavirus pandemic.
Analysts say China’s electricity shortages could be prolonged as demand for coal and natural gas surges during the winter.
Another protracted market concern that resonates from China is the potential for the collapse of Evergrande Group, one of China’s largest real estate developers. It’s struggling to avoid billions of dollars in default.
Mizuho Bank’s Asia-Oceania Treasury Department Bishnu Barasan said, “Importantly, transmission of similar risks to homebuyers and banks through balance sheet exposures increases the risk of transmission within the real estate sector. “. “The fact is that Evergrande has been mitigated at best temporarily, but at risk far from being abolished.”
According to analysts, Japan’s ruling leader’s vote scheduled for Wednesday also emphasized Tokyo’s trade as players were on the lookout. Four candidates are running on behalf of Prime Minister Yoshihide Suga. As the pro-US Liberal Democratic Party has ruled Japan almost continuously in recent decades, no major economic or foreign policy changes are expected.
Private consumption is a major driver of economic recovery, and cases of COVID-19 may be increasing due to the highly contagious delta mutants that remain of great concern in Asia.
In energy trading, benchmark US crude added 73 cents to $ 76.18 a barrel in electronic trading on the New York Mercantile Exchange. It rose $ 1.47 to $ 75.45 per barrel on Monday.
The international standard Brent crude oil rose 68 cents to $ 80.21 a barrel.
In foreign exchange trading, the US dollar rose from 110.00 yen to 111.26 yen. The euro was priced at $ 1.1679, down from $ 1.1684.
Yuri Kageyama is on Twitter https://twitter.com/yurikageyama
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World share depends primarily on China’s energy, Evergrande fears
Source link World share depends primarily on China’s energy, Evergrande fears