Stocks, U.S. futures and commodities sank with Treasury yields Monday as China’s worsening Covid situation amplified concerns about a slowdown in demand in the world’s second-largest economy.
MSCI Inc.’s Asia-Pacific gauge fell for the sixth session in seven with sharp declines in Hong Kong and China. S&P 500 and Nasdaq 100 futures contracts dropped in a sign of further weakness to come. Treasuries paused the rout of the past week that roiled markets and the dollar extended an advance as investors opted for safe havens.
Crude fell below $100 a barrel and iron ore slumped in Singapore. Palm oil jumped after Indonesia, the world’s largest exporter of the commodity, halted exports of cooking oil and its raw materials amid a local shortage. China locked down some areas of Beijing as policy makers raced to prevent a repeat of the outbreak that’s hobbled Shanghai for weeks.
The offshore yuan fell to the lowest since April 2021 after the daily fixing was in line with forecasts. Fears of a wider lockdown in the Chinese capital amid the government’s steadfast adherence to its Covid-zero policy is spooking investors worried about disruptions to the global supply chain and demand.
