Asian Stocks Fall Further After New Virus Variant Spreads | Business News

By JOE McDONALD, AP Business Writer

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 smaller than Friday’s fall after reports said the variant first spotted in South Africa appear to spread 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.

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The Nikkei 225 in Tokyo fell 1.7% to 28,260.47 after Prime Minister Fumio Kishida announced Japan will bar entry by foreigners starting Tuesday.

The Shanghai Composite Index lost 0.4% to 3,548.13 and the Hang

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Cisco forecast knocked by supply chain snags, shares fall

Cisco Systems Inc forecast current-quarter revenue below expectations as supply chain shortages and delays drive up costs.

Shares of the network gear maker fell 6.3% in extended trading after it said it expects second-quarter revenue to grow 4.5% to 6.5% year-over-year, compared with Wall Street expectations of about 7.4%.

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Businesses across the globe are facing an unprecedented semiconductor shortage that has pushed up expenses, hurting companies such as Cisco that use chips in their products.

Cisco Chief Financial Officer Scott Herren told Reuters the company also faces higher transport and logistics costs in its supply chain. Cisco is making progress on pinpointing and resolving component shortages but getting everything to the right place remains a challenge, he said.

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Primark’s sales fall short as COVID continues to take toll

Signage is displayed outside a Primark store at the Oxford Street, in London, Britain July 2, 2020. REUTERS/Hannah McKay

  • Primark Q4 underlying sales seen down 17% on two-year basis
  • UK sales hurt by ‘pingdemic’
  • Group still raises full year profit forecast
  • Shares down 3.4%

LONDON, Sept 13 (Reuters) – Sales at fashion retailer Primark fell short of management expectations in its latest quarter, hit by public health restrictions in major markets to control the fast-spreading Delta coronavirus variant.

Shares in owner Associated British Foods (ABF.L) were down 3.4% at 0859 GMT after it forecast Primark’s like-for-like sales in its fourth quarter to Sept. 18 were down 17% on the same period two years ago. That was after a 3% increase in the third quarter when stores reopened from pandemic lockdowns.

Primark’s two biggest markets, Britain and Spain, were particularly badly hit.

Britain suffered in late June and early July from

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Global corporate profits to fall 8% in Q3 after record Q2 – data

People walk through the financial and business district of La Defense in Puteaux near Paris, France, August 23, 2021. REUTERS/Sarah Meyssonnier

Aug 25 (Reuters) – Global corporate profits in the third quarter are likely to fall for the first time in 18 months after record earnings in April-June, Reuters calculations showed, as the spreading COVID-19 Delta variant squeezes supply chains and raises labour costs.

Massive fiscal stimulus to support economic recovery and loosened pandemic curbs generated high consumer demand in the second quarter, and companies contending with disrupted supplies and falling inventories raised prices to offset rising input costs.

This helped boost the combined net profits of 2,542 global companies with market capitalisation of at least $1 billion to a record $734 billion in the quarter ended June, according to a Reuters analysis of Refinitiv data.

But profits are estimated to fall 8% on average to $678.2 billion in

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