Asia ends the week on the ground, thanks not only to the war in Ukraine and the flare-up of inflation, but also to Washington’s squeeze on Chinese companies listed on Wall Street. A step that prompted Beijing to take a slightly more critical stance on the ongoing conflict. At 7:10 Italian time the Nikkei lost 2%, Hang Seng 2% in turn, Shanghai 0.6%. Gold slipped by 0.55% to 1,989 dollars an ounce, US WTI oil remained at 106 dollars a barrel, while the euro rose to 1.10, the yen lost 0.4% to 116.62 and the pound moves sideways at 1.3085. The US 10-year T bond sees the yield drop slightly to 1.97%, with Wall Street futures just below par.
Sentiment undoubtedly suffered from concerns over Russia’s war against Ukraine, following the sharp failure of talks between their foreign ministers yesterday in Turkey. Hang Seng tumbled to 3.7%, with shares in Yum China and four other companies taking a hit after the groups got involved in a dispute between Beijing and Washington.
Yum China Holdings, the owner of KFC, Taco Bell and Pizza Hut restaurants in China, said it may have to delist from the New York Stock Exchange by 2024 after US authorities said the company did not provide access to the documents. audit. The selloff started today in Asia even if the Chinese regulatory authority (the local Consob) said it was confident of reaching an agreement with the US authorities on the supervision of securities.
“We have a terrible macroeconomic environment with a serious inflation problem which implies that we will see a much, much tighter monetary policy,” wrote Rob Carnell, chief economist at Ing in Singapore. Russia’s war on Ukraine is likely to make everything from energy to metals to agricultural products much more expensive, Carnell added. “Everyone’s income will be eroded. Global growth will take a hit. What do we need more
?”
The United States, together with the European Union, will move today to revoke Russia’s “most favored nation” status for the invasion of Ukraine, several sources told Reuters. This move implies that the US and its allies can impose tariffs on a wide range of Russian goods, which would further increase the pressure on an economy that is already heading into “deep recession”.
Chinese Premier Li Keqiang said the situation in Ukraine is “staggering” and that it is important to support Russia and Ukraine in the ceasefire talks. Speaking at a press conference at the end of the annual parliamentary session, Li did not directly answer Reuters questions about whether China refrains from condemning Russia, regardless of what that country does, or whether China is willing to provide further. economic and financial support.
China and Russia have formed a strong partnership and Beijing has refused to condemn Russia’s attack on Ukraine or call it an invasion. Beijing has repeatedly expressed its opposition to what it describes as illegal sanctions imposed by the West on Russia and called for a negotiated solution to the crisis. (All rights reserved)
