HONG KONG: Asian markets dipped on Monday after China’s first Covid-19 death in six months sparked fears that the world’s second-largest economy may reimpose harsh and strict restrictions to fight the deadly diseases in the country.
The news has stirred nervousness among investors who had hoped for a gradual reopening after China eased several restrictions at the beginning of November.
The latest death of an 87-year-old man in Beijing on Sunday was reported after a spike in infections across the country as authorities struggled to tighten the restrictions.
The capital Beijing has recently moved to confine some residents to their homes and ordered others to quarantine centres, according to AFP.
These stringent measures have dealt a blow to Hong Kong’s Hang Seng, which fell more than 2%, extending a sell-off at the end of last week and eating further into a recent massive rally.
Stock markets in Tokyo, Sydney, Seoul, Singapore, Taipei, Manila, and Kuala Lumpur also witnessed a drop, fuelling uncertainty.
World markets enjoyed a broadly healthy November thanks to signs of China easing and indications of slowing US inflation that fanned optimism that the Fed would start to slow its interest rate hikes. APP/AFP
