Nikkei Down 2%, China Lockdown to Extend

Barry Adams
08 May, 2022
New York City

Asian stocks opened lower following volatile trading on Friday in New York. 

The Nikkei index plunged 2.2% to 26,466 after one hour of trading on the rising worries that the U.S. interest rate may rise faster than expected.  

Crude oil traded volatile and eased 59 cents to $111.81 a barrel in international trading after the G7 nations announced a plan to ban or phase out the import of Russian oil. 

Oil declined partly on the falling demand expectations from China and falling activities in Europe. 

China's authorities are likely to extend lockdown conditions in Shanghai till the end of May and are stepping up mass testing in Beijing. 

Coronavirus cases dropped for the nine days according to city officials in Shanghai but thousands are still infected. 

Just last week,  the city of 25 million residents conducted 63 million PCR tests and 126 million rapid antigen tests. 

Investors will be closely watching the release of the consumer price inflation report on Wednesday. 

The inflation index is expected to pick up in April 0.4% from March, ahead of the Federal Reserve's 0.2% target rate.  

Japanese yen inched up to 130.86 against a dollar and the U.S. currency continued its advance against all major currencies on the rising U.S. rate expectations. 

The ASX 200 index dropped 1.3% with banks and mining companies leading the losers but energy stocks gained. 

Westpac, ANZ Banking and National Australian Bank fell between 0.5% and 1%. 

 BHP and Rio Tinto declined 1% but Woodside Petroleum and Santos gained more than 0.5%. 

Early voting in federal elections began in Australia today with the Prime Minister Scott Morrison led coalition facing voter revolt on the rising cost of living. 

The election date is May 21, 2022.