Fears over new Covid variant hit Asian markets, oil prices

Asian markets and oil prices sank while safe havens rallied on Friday over fears of a new Covid variant that scientists warn could be more infectious than Delta and even be more resistant to vaccines, dealing a blow to the global recovery.

The B.1.1.529 strain has been blamed for a surge in fresh cases in South Africa and has already been cropped up in Hong Kong, with the World Health Organization due to hold a meeting later in the day to decide if it should be designated a variant of “interest” or of “concern”.

The finding of the South African variant has led Britain and Israel to ban all travel from the country and five others in southern Africa as officials look to prevent it from taking hold in populations and spreading quickly.

“Early analysis shows that this variant has a large number of mutations that require and will undergo further study,” the WHO said.

The news has hammered confidence in Asian markets, which were already under pressure as traders prepared for the Federal Reserve to start tightening its monetary policy to fend off surging inflation.

Source: https://www.rfi.fr/en/business-and-tech/20211126-fears-over-new-covid-variant-hit-asian-markets-oil-prices