World shares mixed, Hong Kong index dives 5.4%

BANGKOK (AP) – World stocks were mixed on Monday after the neighboring city of Shenzhen was ordered to shut down over China’s handling of its worst COVID-19 outbreak in two years, while Hong Kong’s The Hang Seng Index fell 5%.

Benchmarks rose in Frankfurt, Paris and Tokyo and US futures were higher. Oil prices have plummeted against the backdrop of uncertainty over the war in Ukraine.

Germany’s DAX rose 1.8% to 13,879.27, while Paris’ CAC 40 rose 0.6% to 6,293.04. Britain’s FTSE 100 was almost unchanged at 7,152.08.

The Dow Jones Industrial Average futures rose 0.7%, marking a positive start to trading the week. The future of the S&P 500 was 0.5% higher.

The virus outbreak in China is raising concerns over supply chain disruptions from both the pandemic and the war.

an important manufacturing and technology center of 17.5 million people, shenzhen is home For some of China’s most prominent companies, including telecommunications equipment maker Huawei Technologies Ltd., electric car brand BYD Auto, Ping An Insurance Company and Tencent Holding, operator of the popular WeChat messaging service.

The Hang Seng index fell 5.4%, but lost some ground again to close 5% lower at 19,531.66. The exchange’s tech index fell 11%.

The Shanghai Composite Index slipped 2.6% to end at 3,223.53. The A-share index fell 2.9% in the smaller Shenzhen market.

Authorities restricted access to Shenzhen by suspending bus service and saying everyone in the city would undergo three rounds of tests after 60 new cases were reported on Sunday. All businesses were ordered to close or work from home except those that supply food, fuel and other necessities.

Infection numbers in mainland China are lower than in other countries and with Hong Kong, where more than 32,000 new cases were reported on Sunday. But because of Beijing’s “zero tolerance” strategy lockdown of entire cities To find and isolate every infected person.

In other Asian markets, Tokyo’s Nikkei 225 index rose 0.6% to 25,307.85 and Australia’s S&P/ASX 200 rose 1.2% to 7,149.40. South Korea’s Kospi ended 0.6% lower at 2,645.65.

The central bank’s efforts to fight the Ukraine crisis and inflation remain the focus for most markets.

Russian military forces were continuing their campaign capture the capital of Ukraine As residents of other besieged cities hoped that renewed diplomatic talks could open the way for more civilians to be evacuated or emergency supplies to reach them.

Ukraine’s presidential aide Mykhailo Podolik said a fourth round of talks between Ukrainian and Russian officials is expected on Monday to discuss food, water, medicine and other essential supplies in cities and towns.

On Friday, the S&P 500 was down 1.3% and the Dow Industrials lost 0.7%. The Nasdaq Composite Index lost 2.2% and the Russell 2000 Index of Smaller Companies lost 1.6%.

World markets have seen a dramatic reversal as investors struggle to predict how Russia’s invasion of Ukraine This will affect the prices of oil, wheat and other commodities produced in the region.

It’s raising the risk that the US economy could struggle under a toxic combination persistent high inflation and steady growth. The Federal Reserve is expected to raise interest rates at its meeting this week as it and other central banks act to seal the highest inflation in generations, while trying to avoid creating a recession by raising rates too high or too quickly. We do.

US stocks are down about 10% from their peak earlier this year, while crude oil prices are up more than 40% for 2022.

US benchmark crude oil fell by $3.13 to $106.20 a barrel in electronic trading on the New York Mercantile Exchange. On Friday, it rose by $3.31 a barrel to $109.33 a barrel.

Brent crude, standard for international pricing, declined $2.63 to $110.04 a barrel.

The US dollar rose from 117.35 yen to 117.71 Japanese yen. The euro strengthened from $1.0926 to $1.0959.

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