Asian stocks fall further after new virus variant spreads

BEIJING (AP) — Asian stock markets fell further Monday after the omicron variant of the coronavirus was found in more countries and governments imposed travel controls.

Tokyo, Shanghai, Hong Kong and Sydney declined, though losses were much smaller than Friday's sharp decline after reports said the variant first spotted in South Africa appeared to be spreading around the globe.

On Friday, Wall Street's benchmark S&P 500 index fell 2.3% for its biggest daily loss since February. Investors sold banks, energy and airline stocks and shifted money into bonds and other safe haven assets.

“Financial market volatility will likely persist through this week,” said Venkateswaran Lavanya of Mizuho Bank in a report.

The Shanghai Composite Index lost less than 0.1% to 3,561.94 and the Nikkei 225 in Tokyo shed less than 0.1% to 28,746.49. The Hang Seng in Hong Kong sank 0.8% to 23,876.74.

The Kospi in Seoul declined 0.5% to 2,922.25 and Sydney's S&P-ASX 200 retreated 0.3% to 7,259.20. New Zealand and Southeast Asian markets also were lower.

It is unclear whether the omicron variant is more dangerous than earlier versions, though the World Health Organization called it “highly transmissible.”

Governments have imposed new travel controls, fueling investor fears about possible setbacks in containing the pandemic that has killed more than 5 million people since the first cases in late 2019.

Japanese Prime Minister Fumio Kishida on Monday announced the government will halt as of Nov. 30 its recent change to its border control policies that had allowed foreign business travelers and trainees to enter the country after a long, pandemic-related hiatus.

The new variant has been found in Hong Kong, Belgium and Tel Aviv and South African cities including Johannesburg. The European...