- Global equities plunged on Monday following weekend protests in China against the government's stringent Covid-19 rules in Beijing, Shanghai, and other cities. Covid-19 cases have increased dramatically in mainland China, leading to widespread lockdowns and other restrictions on travel and commerce across.
- Indexes were down globally with the Hang Seng China Enterprises index in Hong Kong falling as much as 4.5% before reversing course to fall just 1.6%. South Korea's Kospi fell 1.2%, while Japan's benchmark Topix fell 0.7%. The tech-heavy Nasdaq Composite fell 1.6%, and Wall Street's benchmark S&P 500 index ended the day down 1.5%. And, the regional Stoxx 600 in Europe was down 0.6%, and the FTSE 100 in London fell 0.2%
Why it matters
The protests, according to traders, have exacerbated anxiety about China since local officials are under more pressure to execute President Xi Jinping's rigorous zero-Covid policy. This is influenced by the almost 40,000 new infections recorded on Sunday alone which means that the number of daily Covid cases in China has now reached a record high.