12th April 2021

Stocks retreat after inflation risks

Stocks were down on Monday as investors become wary of the recent surge in coronavirus cases in many places and an uneven global recovery, while vaccination efforts are making little progress.

In early trading on Monday, the Nikkei 225 NIK, -0.77% in Tokyo lost 0.5% and the Kospi 180721 in South Korea, + 0.12% was up 0.1%. In Hong Kong, the Hang Seng HSI index, -0.97% fell 1% and the Shanghai Composite SHCOMP index, -1.09% sank 0.8%. Australia's S & P / ASX 200 XJO, -0.30%, was down 0.5%. Shares rose in Taiwan Y9999, + 0.03%, but fell in Singapore STI, -0.57% and Indonesia JAKIDX, -2.00%.

Shares of Chinese e-commerce giant Alibaba 9988, 6.70%, rose 6% after the company said it was fined $ 2.8 billion for anti-competitive behavior. The sanction was less than feared as the ruling Communist Party tightens control over fast-growing tech industries.

The declines in Asia followed a strong finale last week on Wall Street, where gains in tech and healthcare stocks pushed the S&P 500 and the Dow Jones Industrial Average to new all-time highs.

Europe's leading gauge opened 0.3% lower, with banks and miners seeing the biggest declines in the Stoxx Europe 600 index. The moves were reflected in US equity futures, which then fell back. a third straight week of earnings and new records for the S&P 500 Index.

The yield on 10-year Treasuries fell ahead of an auction round that will be widely watched for its potential to extend the rate hike that has hit commodity stocks in emerging markets this year. The United States sells three-, 10- and 30-year Treasuries at the beginning of the week.

While the US recovery is accelerating, economies are still at risk of increasing Covid-19 cases and vaccine setbacks.

In Asia, Japan is struggling to control infections as it prepares to host the Tokyo 2020 Olympics. Thai health officials warn that the daily rate of new infections could exceed 28,000 if urgent action is not taken to counter the worst outbreak. of the country so far.

Oil fell and Bitcoin rose above $ 60,000, not far from its all-time high. The upcoming listing of cryptocurrency exchange Coinbase Global Inc. in the US has turned the spotlight back on the digital token sector.