Sanctions and COVID-19 restrictions put pressure on Asian markets

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The Chinese stock exchanges lost ground on Tuesday. The sanctions imposed by the European Union, the United States, Canada and the United Kingdom against the country because of the suppression of the Uyghur Muslim minority in Xinjiang caused investor restraint. Other stock exchanges in the Asian region also showed losses. The transport companies and the travel sector in particular were under pressure from the extension of lock-down measures in many European countries.

In the meantime, the Shanghai stock market rate was 1.1 percent lower and the Hang Seng index in Hong Kong lost 1.4 percent. China immediately retaliated after the EU’s human rights sanctions and imposed sanctions on European politicians, including MP Sjoerd Sjoerdsma. The sanctions of the Western countries are mainly causing restraint on the part of international investors in China.

Geely dropped five percent in Hong Kong. The Chinese car manufacturer saw a significant drop in profits in the past year due to the impact of the coronavirus crisis on car sales. The company also announced the creation of a joint venture with parent company Zhejiang Geely Holding Group for electric vehicles under the Zeekr brand. The Chinese tech group Baidu made a tame Trade Fair debut in Hong Kong and scored almost flat against the introduction price. Baidu is already listed on the US tech Exchange Nasdaq.

The Nikkei in Tokyo finished 0.6 percent lower at 28,995. 92 points. Shipping company Kawasaki Kisen Kaisha and airline ANA Holdings lost more than 6 percent and more than 5 percent, following the strong exchange losses among European and American peers. The Japanese automakers Toyota, Nissan and Honda showed recovery after the heavy losses a day earlier. Renesas (plus 2.6 percent) also sprung up. The Japanese chip maker dropped nearly 5 percent on Monday due to a fire at the company’s factory. The fire is likely to lead to a further shortage of computer chips in the automotive sector.

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