SYDNEY : Asian stocks were in the red on Tuesday as surging COVID-19 cases in China hit the confidence of investors who are already worried about the Ukraine war and the first U.S. interest rate rise in three years, which could come this week.
However, the fourth round of negotiations began Monday with no major progress seen, adding to the nervousness in equity markets. But adding to the overall negative sentiment are rising case numbers of COVID-19 in China, which investors fear will hurt the mainland's economic growth in the first quarter.
Hong Kong's Hang Seng Index remains mired in negative territory, dropping 3.8per cent early on Tuesday, following an almost 5per cent selloff one day earlier. Hong Kong's main board is down 17per cent so far in March.China on Tuesday reported 3,602 new confirmed coronavirus cases compared with 1,437 on Monday, according to the National Health Commission.
U.S. stocks experienced a mixed session, with declining technology companies prompting most indexes to close lower Monday.