China, Delta Drag Asian Sentiment

Fears of weakening economic recovery in China exacerbated the negative sentiment attributed to the worsening coronavirus situation in the region and dragged down most Asian stocks. Key regional benchmarks closed in the red after several economic indicators for July from China missed forecasts.

China’s Shanghai Composite however managed to close at 3517.34, up 0.03 percent above Friday’s close after PBoC’s status quo on medium term lending rates and liquidity infusion partially revived sentiment lost in the aftermath of the data releases.

Japan’s Nikkei 225 closed at 27523.19, down 453.96 points or 1.62 percent as delta despair eclipsed better-than-expected GDP numbers. Citizen Holdings advanced by 9.82 percent followed by Fujifilm Holdings Corp. which rallied 6.78 percent. Nippon Express Co. declined by more than 13 percent. Takara Holdings dropped 5.23 percent in the day’s trade.

The Hang Seng Index of the Hong Kong Stock Exchange shed 233 points or 0.88 percent to close at 26,158.62. The day’s high was at 26,439 and low at 26,043.37. The Korean market was closed on Monday being public holiday.

The S&P/ASX200 closed lower Monday, dropping 46.40 points or 0.61% to 7,582.50 amidst extension of certain coronavirus restrictions and reinstatement of night curfew.

The A2 Milk Company rallied more than 12 percent over reports of possible takeover. Beach Energy declined by more than 9 percent after the oil producer reported a dip in its revenue as well as profit for the financial year 2021. Bendigo and Adelaide Bank also crashed more than 9 percent post earnings report.

The NZX 50 of the New Zealand Stock Exchange shed 43.91 points or 0.34 percent to close at 12720.15 amidst an anxious wait to the monetary policy decision later in the week, given the expectation that RBNZ would be raising interest rates.

The a2 Milk Company Limited rallied 11.37 percent on reports that the company is a takeover target. Diagnostics and Research company Pacific Edge declined more than 3 percent. Australia New Zealand Banking Group declined 2.78 percent. On Friday, the Nasdaq 100 had closed at 15136.68, up 48 points or 0.32 percent whereas the Dow Jones Industrial Average closed at 35,515.38, up by 0.04 percent as markets digested the decade-low reading in the University of Michigan’s consumer sentiment survey.