Asia stocks lower as China scales back many COVID curbs
Shares are lower in Asia after benchmarks fell again on Wall Street on fears the Federal Reserve will need to keep the brakes on the economy to get inflation under control, risking a sharp recession
Shares fell in Asia on Wednesday with Hong Kong's benchmark down more than 2% even as Beijing announced it was drastically scaling back its “zero-COVID" policies, shifting away from trying to isolate every single case.
The Hang Seng index in Hong Kong fell 2.5% to 18,949.24 and the Shanghai Composite index was down 0.4% at 3,199.62.
The National Health Commission's announcement ended a requirement for COVID-19 tests and a clean bill of health to be displayed on a smartphone app in most places, apart from vulnerable areas such as nurseries, elderly care facilities and schools. It also limited the scale of lockdowns to individual apartment floors and buildings, rather than entire districts and neighborhoods.
Experts say it might be at least mid-2023 before controls that disrupt travel, trade and industry can be lifted completely, but world markets have gyrated on speculation that major changes might be coming, helping return the world economy to a post-pandemic “normal."
