Asian stocks slipped on Tuesday, as the Delta coronavirus variant spread in key markets in the region and put Chinese authorities on high alert, rattling investor confidence.
Australia's benchmark index, the S&P/ASX200 is off 0.25per cent, having reached a record on Monday after Square Inc announced a US$29 billion offer for buy-now-pay-later firm Afterpay Ltd.The Reserve Bank of Australia is expected to leave rates unchanged at 0.10per cent when it meets later in the day, but reverse the July bond tapering decision due to the lock downs in Sydney and Brisbane caused by the expanding Delta variant.
Adding to the negative sentiment is ongoing investor concern about increasing Chinese official regulation in sectors ranging from technology, fintech and education."It's a challenging time for Asian equities with the uncertainty that has been created by the regulatory measures," Zhikai Chen, head of Asian equities at BNP Paribas Asset Management, said.
Despite the Chinese tech sector woes, electric vehicle maker Li Auto launched its dual primary listing in Hong Kong on Tuesday that will raise up to US$1.9 billion, according to its exchange filings.
Delta 病毒害死我们了！