Asian markets were mixed in trading on Monday, tracking uncertainty over the Omicron variant of the coronavirus as well as disappointing US jobs data and struggling Chinese tech firms.
The Omicron variant has been detected across the globe but no deaths have yet been reported, with authorities worldwide racing to determine how contagious it is and how effective existing vaccines are at fighting it.
Top US pandemic advisor Anthony Fauci said on Sunday that while more information was needed, preliminary data on the severity of the Omicron variant are “a bit encouraging”.
Nevertheless, the new strain has sparked fears that the global recovery could be put in jeopardy, as governments reimpose restrictions that many had hoped would be a thing of the past. “Omicron-related uncertainty will linger while market participants wait to learn about the severity, infectiousness and resistance of the strain,” Kim Mundy, a strategist at Commonwealth Bank of Australia, said in a note.
“Omicron could further push back the timeline on any travel-related and reopening rebound, and this continued ‘stop-start’ approach to reopening could result in weaker near-term growth,” said Alexander Wolf, head...
