Asia subdued by slow vaccinations, eye on factory surveys

Asia subdued by slow vaccinations, eye on factory surveys

SYDNEY - Asian share markets were in a muted mood on Friday after a volatile week in which sentiment over global growth waxed and waned with every new headline on the Delta variant. A slew of July factory surveys are expected to show only a slight softening of activity in Europe and the United States from very high levels, but Asia looks more vulnerable. "In the face of headwinds from the Delta variant of the COVID-19 virus, the global economic expansion is moving forward"”albeit more tentatively than a month ago," said Sara Johnson, executive director of global economics at IHS Markit. "Outlooks in advanced countries with high vaccination rates remain bright, but near-term prospects in emerging and developing countries with low vaccination rates are murkier." That diverging outlook was reflected in MSCI's broadest index of Asia-Pacific shares outside Japan which slipped 0.6%, leaving it down 1.4% on the week so far. Japan's Nikkei was closed for a holiday, but off 1.7% for the week and a whisker away from a seven-month trough. Chinese blue chips lost 1.2%, though remained well within their tight trading range of the past three weeks. Wall Street was in a better mood after a run