Coronavirus Update: Shanghai lockdown imminent, Tokyo to tighten restrictions

Despite the speculation of a likely lockdown to be imposed on Shanghai city, risk sentiment appears to be in a better spot in Thursday’s Asian trading. Markets see a fresh lockdown in China’s financial hub coming up soon, as the city reports a big jump in new coronavirus cases on Thursday.

Shanghai Health Commission announced that the city reported 32 locally transmitted confirmed cases and 11 imported confirmed cases.

Authorities have suspended operations of karaoke lounges, but other recently-reopened cultural venues such as libraries will stay open. Cinemas are due to reopen on Friday. 

Meanwhile, Fuji News Network (FNN) reported that the Japanese capital city of Tokyo is mulling plans to tighten covid restrictions. Tokyo Governor said it plans to discuss possible covid curbs.

Market reaction

Markets are stabilizing after the recent volatility, with S&P 500 futures up 0.11% on the day. AUD/USD is extending its recovery above 0.6800, adding 0.58% on the day.