Asia-Pacific Shares Mixed; South Korean Stocks Tumble on COVID-19 Spike

The major Asia-Pacific stock indexes finished mixed on Tuesday as the mood shifted to downbeat after the United States imposed financial sanctions on some Chinese officials on Monday, raising more fears about relations between the two countries, while losses on Wall Street overnight set the tone in early trading.

In the cash market on Tuesday, Japan’s Nikkei 225 Index settled at 26467.08, down 80.36 or -0.30%. Hong Kong’s Hang Seng Index finished at 26304.56, down 202.29 or -0.76% and South Korea’s KOSPI Index closed at 2700.93, down 44.51 or -1.62%.

China’s Shanghai Index settled at 3410.18, down 6.43 or -0.19% and Australia’s S&P/ASX 200 finished at 6687.70, up 12.70 or +0.19%.

China Promises Countermeasures against US Sanctions

The United States on Monday imposed financial sanctions and travel ban on 14 Chinese officials over their alleged role in Beijing’s disqualifications last month of elected opposition legislators in Hong Kong.

China said on Tuesday it would take firm countermeasures. The U.S. move to sanction Chinese officials is “unwarranted and vile behavior”, and China urges it to withdraw the decision, foreign ministry spokeswoman Hua Chunying told a regular briefing.

South Korea Shares Slump on Concerns over Wave of Coronavirus Infections

South Korean shares lost over 1.50% on Tuesday as concern over a wave of local coronavirus infections hit one of the countries viewed as having done best at quelling outbreaks.

South Korea reported 594 new coronavirus cases on Tuesday, and health authorities predicted daily cases would hover between 550 and 750 this week, and possibly spike to as much as 900 next week.

The country also announced it had signed deals to provide coronavirus vaccines for 44 million people next year but it would not hurry inoculation to allow more time to observe potential side effects.

The South Korean government has arranged to buy 20 million doses each from AstraZeneca Plc, Pfizer Inc, and Moderna Inc, and another 4 million doses from Johnson & Johnson’s Janssen, enough to cover up to 34 million people, Health Minister Park Neung-hoo told a briefing.

Additional doses for 10 million people would be procured through the World Health Organization’s global vaccine project, known as COVAX, he added.

Hong Kong Stocks Fall on Sino-US Tensions

Hong Kong stocks ended down on Tuesday, on persistent worries over Sino-U.S. tensions, while fresh concerns about a surge in COVID-19 infections also weighed on the market.

Financials led the decline, with the financial sector ending 1.98% lower, while a sub-index of the Hang Seng tracking energy shares dipped 2.9%, the IT sector rose 0.92, and the property sector dipped 0.93%.

Australian Shares Inch Higher as Gold Miners Climb

Australian shares inched higher on Tuesday as gold miners rose on strong bullion prices, though gains were capped by losses in energy stocks triggered by an overnight slump in oil prices.

The gold sub-index gained as much as 2.8%, after expectations of fresh fiscal stimulus in the United States pushed prices up 1% on Monday. Sector heavyweights Newcrest Mining and Northern Star Resources added up to 2.4% and 3.3%, respectively.