Jakarta, CNBC Indonesia – Asian stocks re-opened on Friday (9/7/2021), amid investor concerns about the development of the coronavirus pandemic in Asia and ahead of the release of China’s inflation data reflected in the consumer price index (CPI) for the June 2021 period.
Japan’s Nikkei index opened down 1.39%, Hong Kong’s Hang Seng fell 0.11%, China’s Shanghai Composite fell 0.38%, Singapore’s Straits Times depreciated 0.32%, and South Korea’s Kospi fell 1.04%.
Investors will monitor the release of Chinese CPI data for the June 2021 period which will be released at 09:30 local time or 08:30 WIB.
Meanwhile, the development of the coronavirus (Covid-19) pandemic in Asia made investors worried again and began to reduce investment in risky assets such as stocks.
In Japan, Olympic organizers will ban spectators from next summer’s games in Tokyo, after a state of emergency was declared by Japan as Japan is again faced with an increase in Covid-19 infections.
Earlier, Japanese Economy Minister Yasutoshi Nishimura said the state of emergency in Tokyo would start from July 12 to August 22. He also said there would be restrictions applied in restaurants.
“Japan will declare a state of emergency for Tokyo which will host the Olympics to try to contain the new wave of coronavirus infections,” he said Reuters.
Later the announcement will be officially announced by Prime Minister (PM) Yoshihide Suga at a press conference.
This decision was taken after on Wednesday (7/7/2021) Tokyo reported the highest record of transmission of the corona virus since May. Where there are 920 daily infection cases.
Meanwhile in South Korea, the government announced today that the capital area of Seoul will be implementing social distancing rules (social distancing) Level 4, or emergency level.
Turning to the United States (US), the Wall Street stock market weakened quite sharply on Thursday (8/7/2021) local time. The S&P 500 index, which recorded an all-time high the day before, led the other index declines.
Launch data RefintiveThe S&P 500 index fell 0.86% to 4,320.82, followed by the Dow Jones index tumbling 0.75% to 34,421.93, and the Nasdaq index minus 0.72% to 14,559.79.
Anxiety about the global economic slowdown due to the surge in Covid-19 cases in various countries triggered a sell-off on Wall Street.
“The increase in Covid cases, especially the Delta variant, has sparked concerns that the economic acceleration will slow down,” said Timothy Lesko, analyst at Granite Investment Advisors. CNBC International.
The anxiety increased after data showed claims that the unemployment rate in the US soared.
The US Department of Labor reported that 373,000 people filed claims for unemployment benefits for the first time over the past week. The figure was worse than the consensus of economists in a Dow Jones poll that had forecast 350,000.
Cyclical stocks, which will benefit from the opening of the economy, are heavily corrected. Shares of cruise liner Carnival and Royal Caribbean compact plunged more than 1%, shares of airlines American Airlines and Delta Air Lines also fell more than 1%. Then retail firm Nordstrom plunged nearly 3%, and Home Depot 1.5%.
Tech stocks also tumbled, with Micron, Qualcomm and Intel dropping more than 1%, while Nvidia tumbling 2.3%. The giants Microsoft, Apple, Facebook and Alphabet also ended up in the red, with only Amazon managing to gain 0.9%.
Banking stocks also fell, with Bank of America, Wells Fargo and Goldman Sachs dropping more than 2%, with JPMorgan Chase and PNC Financial also in the red.
CNBC INDONESIA RESEARCH TEAM
(chd / chd)
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