Asian stocks tumble deeply today while US futures are trading sharply lower. The development reflects worries over a new coronavirus variant detected in South Africa. The country’s Health Minister Joe Phaahla warned that there has been “more of an exponential rise” in infections over the last four of five days.
UK is banning flights from South Africa and five other southern African countries. Health Secretary Sajid Javid said there were concerns the new variant “may be more transmissible” than the dominant delta strain, and “the vaccines that we currently have may be less effective” against it.
Hong Kong HSI tumbles sharply today in reaction to the new variant news. HSI is trading well inside medium-term falling channel from 31183.35 high. Rejection by 55 day EMA also keeps outlook bearish. We’re looking at deeper fall to 23681.43 first and then 61.8% projection of 29394.68 to 23681.43 from 26234.93 at 22704.14 next.