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Asia-Pacific stocks down on emergence of new virus variant

By Andreas Ismar

05:43, 26 November 2021

A 3D rendering of Covid-19 on an X-ray film background
3D rendering of Covid-19 on X-ray film background – Photo: Shutterstock

Asia-Pacific stocks fell on Friday as the emergence of a new coronavirus variant in South Africa spooked investors.

The variant may be able to evade immune responses and has prompted Britain to introduce travel restrictions on South Africa. The World Health Organization will hold a special meeting on the new variant today.

Benchmark Nikkei 225 index reached a seven-week low, down 3% to 28,628.18 at midday. The broader TOPIX index also hit a seven-week low as it dropped 2.4% to 1,977.73.

Uniqlo’s Fast Retailing shed 3.6%, technology firm SoftBank Group slumped 4.9%, while chip and electronics maker Tokyo Electron slid 2.2%.

New variant also in Hong Kong

The new coronavirus variant was also detected in Hong Kong, dragging the Hang Seng index to an eight-week low. The index was down 2.1% at 24,213.55 at midday.

US30

36,246.10 Price
+0.420% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 2.2

US100

16,080.90 Price
+0.500% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0

HK50

16,280.60 Price
-0.900% 1D Chg, %
Long position overnight fee -0.0259%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 30.0

DE40

16,795.30 Price
+0.930% 1D Chg, %
Long position overnight fee -0.0221%
Short position overnight fee -0.0001%
Overnight fee time 22:00 (UTC)
Spread 8.0

The embattled property developer Evergrande plunged 7.5%, while peer Fantasia declined 4.4%.

Shanghai index slid 0.5% 3,566.18, while South Korea’s KOSPI hit a seven-week low. KOSPI plunged 1.2% to 2,944.94, with Samsung Electronics shedding 2% and SK Hynix falling 1.7%.

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Aussie stock in third weekly loss

The negative sentiment also weighed on Australian stocks, with the S&P/ASX200 index down 1.7% at 7,281.40.

Energy stocks fell the most as the sour mood exacerbated falling crude oil prices. Woodside Petroleum dropped 4.9%, Santos plunged 5.1%.

Read more: Oil prices fall more than 1% on OPEC output uncertainty

Markets in this article

AU200
Australia 200
7212.0 USD
55 +0.770%
AU200
Australia 200
7212.0 USD
55 +0.770%
AU200
Australia 200
7212.0 USD
55 +0.770%
AU200
Australia 200
7212.0 USD
55 +0.770%
AU200
Australia 200
7212.0 USD
55 +0.770%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

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