SINGAPORE-Stock markets in the Asia-Pacific region fell sharply on Tuesday, with major stock indexes in China and South Korea falling by at least 1%.
Hong Kong’s Hang Seng Index fell 1.43% to close at 24,962.59.
On the other hand, after China Evergrande New Energy Automobile promised to start producing electric vehicles next year on Monday, its stock price soared 4.56%. The company is linked to the debt-ridden developer Evergrande, which has missed multiple bond coupon payments in recent weeks.
Chinese mainland stock markets closed lower. The Shanghai Composite Index fell 1.25% to 3,546.94, and the Shenzhen Stock Exchange constituent stocks fell 1.616% to 14,135.38.
The Korea Composite Index fell 1.35% to close at 2,916.38 points. In Japan, the Nikkei 225 index fell 0.94% to 28,230.61, while the Topix Index fell 0.7% to close at 1,982.68 points.
The Australian stock market gave up earlier gains. The S&P/ASX 200 Index fell 0.26% to close at 7,280.70 points.
The MSCI Asia Pacific’s broadest index outside of Japan fell 1.08%.
Oil rally continues
Oil prices rose during the Asian trading session in the afternoon, and rose further after the recent surge above US$80. International benchmark Brent crude oil futures rose 0.24% to US$83.85 per barrel, while US crude oil futures rose 0.11% to US$80.61 per barrel.
National Australia Bank economist Tapas Strickland wrote in a report on Tuesday: “Rising energy prices have heightened concerns that the temporary rise in inflation after the pandemic may Last longer.”
The recent rise in oil prices comes as a rebound in global demand has led to power shortages in major economies such as China. Last week, the Organization of Petroleum Exporting Countries and its allies-collectively referred to as OPEC + organizations-also chose not to increase supply, further pushing up oil prices.
In the US stock market overnight, the Dow Jones Industrial Average fell 250.19 points to 34,496.06, while the Standard & Poor’s 500 Index fell 0.69% to 4,361.19. The Nasdaq Composite Index fell 0.64% to 14,486.20.
The U.S. dollar index, which tracks the U.S. dollar against a basket of currencies, recently rebounded from below 94.2 to 94.335.
The yen-dollar exchange rate was trading at 113.26 US dollars against the US dollar after weakening from below 112.8 yesterday. The Australian dollar was quoted at US$0.7355 against the US dollar, which was higher than the level near US$0.73 earlier in the trading week.
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