Asian Stock Market: China’s anti-Covid curb protests hurt sentiment, oil refreshes 11-month low

• Asian indices have witnessed intense heat amid unrest in China due to the anti-Covid lockdown.
• The USD Index is struggling to surpass the immediate hurdle of 106.40 as investors await US GDP data.
• Oil prices have refreshed their 11-month low near $74.00 amid weaker projections.

Markets in the Asian domain are facing immense pressure amid unrest in China on Covid-19 restrictions. Individuals have come to the roads protesting for a rollback of Covid-19 restrictive measures.

The resurgence of Covid-19 in China has been sustained for several months and now households are frustrated and angry being at home without solid earnings to augment basic needs. The situation of protests in China along with slogans of ‘democracy not dictatorship’ has triggered the risk of civil war. This has triggered a risk-aversion theme in global markets, and, the Asia-Pacific region is facing immense heat. Meanwhile, state banks in China are heavily purchasing equities to propel battered markets.

At the press time, Japan’s Nikkei225 slipped 0.50%, ChinaA50 plunged 1.88%, Hang Seng plummeted 1.86% while Nifty50 has gained 0.24% as the China+1 strategy is going to strengthen Indian equity markets.

The US Dollar Index (DXY) is aiming to establish its business above the two-day high of 106.40 amid an improvement in safe-haven’s appeal. The USD index is expected to remain on tenterhooks ahead of the US Automatic Data Procession (ADP) employment data. As per the consensus, the US economy has added 200k jobs in November vs. the prior release of 239k. Accelerating interest rates and weaker economic projections have forced firms to postpone the recruitment process.

On the oil front, oil prices have refreshed their 11-month low near $74.00 as weaker projections for aggregate demand in China have also impacted guidance for oil demand. China is a leading importer of oil and sluggish demand in China is propelling oil bears.