New variant virus hits investor sentiment, Asian stocks fall, safe-haven assets rise | Anue

Due to the spread of the latest variant of the new coronavirus in South Africa, which has aroused concern in the global market, investors on Friday (26th) dumped risky assets in search of a reliable safe haven.

U.S. Treasuries andJapanese Yenrise,South African RandAgainstDollarThe exchange rate has fallen to its lowest level in a year, and people are worried that this variant virus may spread across countries and hinder the recovery of the global economy.

The Asia-Pacific stock market index is expected to see its biggest one-day decline since March, with Japanese stocks and Hong Kong stocks performing poorly, with travel stocks experiencing the heaviest decline. US and European stock index futures fell.

DollarStabilizing at a 16-month high, commodity currencies generally fell. In the G-10 currency,Japanese YenwithSwiss francBetter performance, againstDollarThey rose 0.4% and 0.2% respectively.South African RandAgainstDollarIt fell 1.3% to a one-year low of 16.1717.

The 10-year U.S. Treasury yield fell 4 basis points to 1.59%. Crude oil fell 3% and gold rose. The US market is closed for Thanksgiving, and thin liquidity may even bring Friday’s volatility.

Although researchers have not yet determined whether this variant virus, named B.1.1.529, is more easily transmitted or more deadly than previous variants, many countries have taken swift action. As a precautionary measure, Britain and Israel temporarily banned flights from South Africa and five neighboring countries. The Hong Kong government confirmed on Thursday night that two cases of the new variant virus were found among passengers arriving in Hong Kong.

Kyle Rodda, an analyst at IG Markets Ltd., said that there was a “terrible title” about this virus variant, so it may have caused a subconscious reaction. And North Americans are on vacation, which also means that a group of potential buying is disappearing.

Alvin T. Tan, head of Asian foreign exchange strategy at RBC Capital Markets, said that traders are reducing risk positions due to concerns about the new variant virus.


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