Hong Kong stocks drop 3% on Chinese unrest, oil falls to 2022 low

Hong Kong stocks drop 3% on Chinese unrest, oil falls to 2022 low

The analyst says lowering China’s reserve requirements won’t make much difference with Covid rules still in place

China’s latest move to cut reserve requirement ratio For banks, 25 basis points will not matter much to their economy without a radical shift from tough Covid restrictions, according to The Economist Corporate Network.

“Consumer and investor sentiment has been hit so badly by these policies that you won’t see a recovery in any meaningful sense until there is a turnaround,” Matty Peckink, the organization’s China director, said on CNBC. “Squawk Box Asia”.

Bekink emphasized how sensitive investor sentiment has affected markets in the past.

“We’ve already seen markets move quite a bit on rumors that Beijing is going to relax — that was only a few weeks ago,” she said.

“The lockdowns seem endless and relentless,” Peking said.

– Jihe Lee

Other currencies also at risk due to Chinese unrest: Standard Chartered

Global currencies will also be at risk of weakness along with the offshore Chinese yuan amid turmoil in China over its anti-Covid policies due to how supply chains will be affected, according to Standard Chartered Bank.

“The main question about how the world will react is how does the Chinese supply chain respond,” Stephen Englender, managing director of Standard Chartered Bank, said on CNBC. “Squawk Box Asia”.

“If there is more disruption, I think it’s very risky,” he said. “Not only CNH, but other currencies will be at risk.”

Englander added that traders may be looking to reduce their exposure to further risk.

– Jihe Lee

Oil prices drop as China’s Covid-19 protests continue

Crude oil futures fell early in Asia as COVID cases, virus restrictions and unrest in China rose, raising concerns about demand from the world’s second largest oil consumer.

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West Texas Intermediate Futures It decreased by 0.35%, to $76.01 per barrel, while Brent Crude Futures It lost 0.26%, to $83.41 a barrel.

Oil prices fell sharply last week as increasing lockdowns in China stoked demand concerns, ANZ Research’s Brian Martin and Daniel Hynes wrote in a note on Monday.

“This continues to be a headwind for oil demand,” they said, adding that the impact of rising Covid cases was reflected in China’s mobility data as well.

– Abigail Ng

Offshore Chinese Yuan weakened in Asia morning as covid protests continue

The offshore Chinese yuan It weakened sharply against the US dollar amid negative sentiment over unrest in China due to Covid restrictions.

The currency fell about 0.8% against the US dollar to 7.2529 in Asian morning trade.

The dollar index It rose 0.32% to 106.29, with investors likely to view the dollar as a safe-haven asset as concern grows over China.

– Jihe Lee

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