Asia markets fall amid unrest in China over Covid restrictions

Global currencies will also be at risk of weakening along with the offshore Chinese yuan amid unrest in China on its zero-Covid policies because of how supply chains may be affected, according to Standard Chartered.

“The key question for how the world reacts is how the Chinese supply chain responds,” Steven Englander, Standard Chartered Bank’s managing director said on CNBC’s “Squawk Box Asia.”

“If it gets further disrupted, I think it’s a risk-off thing,” he said. “Not just CNH, but other currencies will be at risk.”

Englander added that traders may be looking to reduce their exposure to further risk.

— Jihye Lee

Crude oil futures slipped early in Asia as high Covid cases, virus restrictions and unrest in China raise fears about demand from the world’s second-largest oil consumer.

West Texas Intermediate futures shed 0.35% to $76.01 per barrel, while Brent crude futures lost 0.26% to $83.41 per barrel.

Oil prices saw sharp falls last week as “mounting lockdowns in China raised concerns over demand,” ANZ Research’s Brian Martin and Daniel Hynes wrote in a Monday note.

“This remains a headwind for oil demand,” they said, adding that the impact of rising Covid cases was reflected in China’s mobility data as well.

— Abigail Ng

The offshore Chinese yuan sharply weakened against the U.S. dollar amid negative sentiment over unrest in China over Covid restrictions.

The currency weakened around 0.8% against the U.S. dollar to 7.2529 in Asia’s morning trade.

The dollar index rose 0.32% to 106.29, with investors likely seeing the greenback as a safe haven asset as concern over China grows.

— Jihye Lee