Asian Stocks Down as COVID-19 Caution Continues By Investing.com

By Gina Lee

Investing.com – Asia Pacific stocks were mostly down on Tuesday morning, with investors continuing to digest the latest economic data from China amid fears that the latest COVID-19 outbreaks will delay the global economic recovery.

Japan’s edged up 0.15% by 9:54 PM ET (1:54 AM GMT), with the country’s state of emergency set to be extended until Sep. 12.

South Korea’s was down 0.58%, with markets reopening after a holiday.

In Australia, the fell 0.72%. The Reserve Bank of Australia released the earlier in the day, while the and will hand down their policy decisions on Wednesday and Thursday respectively.

Hong Kong’s edged down 0.11%.

China’s was up 0.24%, while the fell 0.71%, as the National People’s Congress Standing Committee began its four-day meeting.

Elsewhere in China, Monday’s disappointing and data, as well as the ongoing regulatory tightening in various sectors, continue to remain on investors’ radars.

U.S. Securities and Exchange Commission Chairman also issued his most explicit warning so far about the risks of investing in Chinese companies.

Investors now await U.S. Federal Reserve Chair at a town hall discussion with educators later in the day, the the day after, and the Jackson Hole symposium later in the month for clues on the Fed’s timeline for asset tapering and interest rate hikes.

Meanwhile, Boston Fed President Eric Rosengren said he would support announcing a start to asset tapering in September should the U.S. get another “strong” jobs report in August. However, some investors suggested that the beginning of asset tapering is not the biggest market shock.

“The asset tapering announcement is unlikely to create a large shock in the market… the market simply had a long time to prepare for it. The real shock will come when the debate on a cycle of Fed rate hikes starts,” Nordea Investment Funds senior macro strategist Sebastien Galy said in a note.

On the data front, U.S. and data are due later in the day.