Asian markets hit by new lockdowns
Rise in virus cases forces govts to revert to measures aimed at preventing Covid-19
HONG KONG:
Fears over a spike in coronavirus infections around the world, the re-imposition of containment measures and China-US tensions pushed Asian equities lower on Tuesday, while oil prices were also hit by speculation top producers will begin tapering their output cuts.
The news that Singapore’s economy, considered a regional barometer, contracted a mind-boggling 41% in the second quarter provided a stark reality check for traders.
After hitting lows in March, markets have been surging thanks to government support and optimism that the world economy will bounce back as crippling lockdowns are eased. But a worrying increase in new virus cases across the planet has forced governments to revert to measures aimed at preventing the disease’s spread.
California, the richest of the US states, ordered all indoor restaurants, bars and movie theatres to re-close, while churches, gyms, shopping malls, hair salons and non-essential offices have been told to shut up shop in several densely populated counties, including Los Angeles. The measures follow new restrictions imposed in Texas, Arizona, Florida and other major states.
Meanwhile, Hong Kong on Monday announced sweeping new curbs as the city suffers a relapse. Melbourne is already under a new lockdown and there are signs of new outbreaks in Sydney. The new spikes come as World Health Organisation chief Tedros Adhanom Ghebreyesus warned “there will be no return to the ‘old normal’ for the foreseeable future.”
He added that without governments adopting a comprehensive strategy, the situation would get “worse and worse and worse”. The developments overshadowed an announcement from Pfizer and BioNTech that two of four vaccine candidates for the virus had received “Fast Track” designation from the US Food and Drug Administration.
Published in The Express Tribune, July 15th, 2020.
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