Asian markets fall again as investors assess virus threat to global recovery

Asian markets fall again as investors assess virus threat to global recovery

AFP / Hong Kong

Asian markets fell again on Monday after last week’s painful rout fuelled by news of the Omicron virus strain but European stocks and oil rebounded strongly as investors try to assess its threat to the global economic recovery.

Equities around the world went into freefall Friday on news of the heavily mutated variant, which some fear could evade vaccines, as it forced several governments to throw up flight bans from southern Africa where it was discovered and introduced fresh containment measures.

The crisis added to an already jittery mood on trading floors caused by surging inflation and central banks starting to roll back their ultra-loose monetary policies to prevent prices from running out of control.

“Omicron’s uncertainty has triggered a rethink on the global economic outlook,” said National Australia Bank’s Rodrigo Catril. “A new Covid wave may or may not be more infectious or deadly, but until we know more markets are likely to remain jittery.”

Some traders were taking solace in comments from two South African health experts who said symptoms of Omicron appeared to be mild so far, though the World Health Organisation has urged caution. But analysts warned markets would remain on edge until more