Stocks fall, paradises rise as new COVID-19 variant scares off investors

passers-by wearing protective masks are reflected on an electronic board display stock quotes outside a brokerage amid the coronavirus disease (COVID-19) outbreak, in Tokyo, Japan, September 29, 2021. REUTERS/Issei Kato

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SYDNEY, Nov. 26 (Reuters) – Asian stocks suffered the worst drop in two months on Friday after the detection of An new and potentially vaccine-resistant coronavirus variant hastily sent investors to the safety of bonds, the yen and the dollar.

MSCI .’s Broadest Index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) decreased 1.3%, it is strongest drop since Sept. Casino and drink shares sold off in Hong Kong and travel stocks fell in sydney.

Japanese Nikkei (.N225) slipped 2.5% and US crude oil futures also fell nearly 2% amid fresh demand fears.

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Scientists said the variant, detected in South Africa, may be able to evade immune responses. UK authorities believe it is the most significant variant yet, fear it could resist vaccines and have rushed to impose travel restrictions on South Africa. read more

“You shoot first and ask questions later when this kind of news erupts,” Ray Attrill said, head of FX strategy at National Australia Bank in sydney.

South Africa’s fringe fell met 1% to a one-year low in early trade. The risk-sensitive Australian and New Zealand dollars fell to their lowest point in three months and S&P 500 futures fell met 0.9%.

sales in Asia has global shares (.MIWD00000PUS), on Class for their worst week since begin October. Dow Jones futures fell met 1%, while FTSE futures and Euro STOXX 50 futures fell about 1.4% each.

Little is known over the new variant. But scientists told reporters it has a “very unusual zodiac sign” of mutations, worrying because they could help it evades the body immune response and make it more transferable. read more

“Markets anticipate the risk here of another global golf of infections when vaccines are ineffective,” says Moh Siong Sim, a currency analyst at the bank of Singapore.

“Reopening Hope Could Be Destroyed.”

moves in treasure chests were also sharp after Thanksgiving holiday and yields drawn quickly back some of the profit of the week. Benchmark 10-year returns fell almost 6 basis points to 1,5841%.

The yen rose about 0.4% to 114.84 per dollar and the Aussie was last down 0.5% at $0.7148.

The moves come against a background of concern over outbreaks of COVID-19 driving restrictions on movement and activity in and if markets aggressive price U.S rate rises next year.

European countries extensive COVID-19 booster vaccinations and tightened curbs at night. Slovakia announced a two-week lockdown, the Czech government shall shut bars early and Germany crossed the . over threshold of 100,000 COVID-19 related deaths. read more

Shanghai on Friday limited tourist activities and a nearby city cut public transportation while China doubles down on to be zero-tolerance approach i.e.: also nerve-wracking traders. read more

At the same time a slew of stronger than expected US data points has priced the Fed Funds futures markets for no less than three rate walks in 2022.

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Reporting by Tom Westbrook; Edited by Lincoln Feast.

Our standards: The Thomson Reuters Trust Principles.

Read More: World News

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