Asian Stock Market: Chinese markets bleed on renewed Covid-19 fears, oil plunge support the rest

• Chinese equities nosedive on renewed fears of Covid-19, lockdown in Shenzhen.
• Japan’s Nikkee225 has found ground on falling oil prices.
• The DXY is underpinned by escalating war tensions, upcoming Fed policy, and renewed Covid-19 fears.

Markets in the Asian domain part ways with the Chinese stocks in the Asian session on renewed fears of the Covid-19 epidemic in China. The covid resurgence in China and its lockdown in Shenzhen have brought a sell-off in the Chinese equities. In response to the rising cases of Covid-19, Toyota announced a suspension of production in China’s Changchun city due to COVID-19 shutdown measures while Foxconn halted output at its iPhone site in Shenzhen city.

At the press time, Japan’s Nikkei 225 surges 1%, and Nifty 50 jumps 0.4% while the China A50 tumbles 2.4% and Hang Seng nosedives 3.27%.

Japan’s Nikkie225 surges 1% on Monday as investors have cheered the recent fall in oil prices. Earlier, the galloping oil prices were souring the mood of the Asian markets. The latter is the leading importer of oil and a surge in the oil prices results in contraction of margins in the manufacturing and other economic activities. The oil prices have plunged in the territory of $100 and investors have taken a sigh of relief.

Meanwhile, the US dollar index (DXY) is approaching 100.00 with numerous supporting factors. The risk-off impulse in the market amid renewed fears of Covid-19 cases in China and Russian military activity on a large Ukrainian base near the border with NATO member Poland has intensified fears of an escalation in the war. Adding to that, the Federal Reserve (Fed)’s monetary policy is on Wednesday and a much likely hawkish stance from the Fed Chair Jerome Powell will underpin the DXY further.