Asian markets sank on Friday over fears of a new SARS-CoV-2 variant that scientists warn could be more infectious than Delta and more resistant to vaccines, potentially dealing a heavy blow to the global recovery.
The Omicron strain has been blamed for a surge in fresh cases in South Africa and has already cropped up in Hong Kong, with the WHO designated it a “variant of concern.”
The discovery of the Omicron variant has led the UK and Israel to ban all travel from the country and five others in southern Africa, as officials look to prevent it from taking hold in populations and spreading quickly.
“Early analysis shows that this variant has a large number of mutations that require and will undergo further study,” the WHO said.
The news has hammered confidence in Asian markets, which were already under pressure as traders prepared for the US Federal Reserve to start tightening its monetary policy to fend off surging inflation.
On equity markets, Tokyo, Hong Kong and Mumbai were more than 2 percent off, while Taipei, Sydney, Seoul, Singapore, Bangkok, Manila, Mumbai, Wellington and Jakarta shed more than 1 percent. Shanghai saw more limited losses.
Firms linked to travel were among the worst affected as investors fretted over the possibility that more restrictions will be brought in by governments.
Sydney-listed Qantas Airways Ltd lost more than 5 percent, Hong Kong’s Cathay Pacific Airways Ltd (國泰航空) shed 4 percent and Singapore Airlines Ltd more than 3 percent. Macao casino operators were also hammered in Hong Kong.
The TAIEX fell 1.6 percent to close at 17,369.39, down 2.52 percent for the week.
Tokyo stocks ended sharply lower as news of the variant spooked investors and strengthened the safe haven yen.
The benchmark Nikkei 225 Index managed to trim losses in late trade and ended down 2.53 percent, or 747.66 points, at 28,751.62. The index fell 3.34 percent for the week.
The KOSPI in Seoul lost 1.5 percent to 2,936.44, down 1.2 percent weekly, and Sydney’s S&P/ASX 200 fell 1.7 percent to 7,279.30, down 1.6 percent for the week.
India’s SENSEX retreated 2.9 percent to 57,107.15, down 4.2 percent for the week. New Zealand and Southeast Asian markets also declined.
The broader TOPIX slipped 2.01 percent, or 40.71 points, to 1,984.98. It fell by the same percentage for the week.
Investors feared that the latest plunge might trigger a global market rout that might continue next week, Okasan Online Securities said in a note.
Additional reporting by AP, with staff writer
Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came under pressure yesterday after a report that Apple Inc is looking to shift some orders from the Taiwanese company to Intel Corp. TSMC shares fell NT$55, or 2.4 percent, to close at NT$2,235 on the local main board, Taiwan Stock Exchange data showed. Despite the losses, TSMC is expected to continue to benefit from sound fundamentals, as it maintains a lead over its peers in high-end process development, analysts said. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang
TRANSITION: With the closure, the company would reorganize its Taiwanese unit to a sales and service-focused model, Bridgestone said Bridgestone Corp yesterday announced it would cease manufacturing operations at its tire plant in Hsinchu County’s Hukou Township (湖口), affecting more than 500 workers. Bridgestone Taiwan Co (台灣普利司通) said in a statement that the decision was based on the Tokyo-based tire maker’s adjustments to its global operational strategy and long-term market development considerations. The Taiwanese unit would be reorganized as part of the closure, effective yesterday, and all related production activities would be concluded, the statement said. Under the plan, Bridgestone would continue to deepen its presence in the Taiwanese market, while transitioning to a sales and service-focused business model, it added. The Hsinchu
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) investment project in Arizona has progressed better than expected, but it still faces challenges such as water and labor shortages, National Development Council (NDC) Minister Yeh Chun-hsien (葉俊顯) said yesterday. Speaking with reporters after visiting TSMC’s Arizona hub and attending the SelectUSA Investment Summit in Maryland last week, Yeh said TSMC’s Arizona site turned a profit of NT$16.14 billion (US$514 million) last year in its first full year of mass production. “TSMC told me it was surprised by the smooth trial run of the first fab, which has left the company optimistic about the project’s outlook,”
RSS