The reemergence of COVID-19 in China has generated concerns that Beijing may reimpose harsh pandemic controls, which may further disrupt supply chains. Indian equity indexes eked out a small gain on Tuesday, breaking a three-session losing skid.
The larger NSE Nifty index nudged up 0.01 percent while the BSE Sensex index increased 20.6 points to 61,165.44.
However, in early trade, China’s benchmark index dropped 0.13 percent, while the larger Asia-Pacific index ex-Japan sank 0.25 percent. Hong Kong’s benchmark index fell 1.31 percent.
“China’s Covid situation is really in the front row for Asia trading,” Redmond Wong, Market Strategist for Greater China at Saxo Markets in Hong Kong, told Reuters.
But the dollar reversed its strong overnight gains, and oil stopped falling after Monday.
