Asian shares slide, wheat, corn ease, gold prices drop

Asian shares slid on Monday as China imposed a lockdown in Shanghai, following a drastic rise in fresh Covid infections.

Chinese blue chips shed 0.8 percent. Japan’s Nikkei lost 0.4 percent but is still almost six percent firmer for the month as a sinking yen promised to boost exporter earnings.

S&P 500 stock futures eased 0.3 percent, while Nasdaq futures slipped 0.4 percent.

Indian shares also followed Asian peers lower on Monday.

The blue-chip NSE Nifty 50 index was down 0.71 percent at 17,030.85, as of 0505 GMT, while the S&P BSE Sensex slipped 0.77 percent to 56,918.51. Both indexes were headed for their fourth straight session of losses.

China’s financial hub of Shanghai launched a planned two-stage lockdown of the city of 26 million people on Monday, closing bridges and tunnels and restricting highway traffic in a scramble to contain surging local Covid cases.

Wheat, corn ease

Chicago wheat and corn futures lost ground on Monday, as traders squared off positions ahead of a widely watched US planting intentions report due later this week.

The most-active wheat contract on the Chicago Board of Trade dropped 2.45 percent to $10.65-3/4 a bushel, and corn was down 1.23 percent at $7.44-3/4 a bushel.

Soybeans fell 0.7 percent to $16.98-1/4 a bushel.

Gold prices drop

Gold prices fell on Monday as the dollar index gained and US Treasury yields held firm near multi-month highs, with investor focus on potential Russia-Ukraine peace talks this week further dimming bullion’s safe-haven appeal.

Spot gold was down 0.7 percent at $1,943.72 per ounce at 0426 GMT.

US gold futures were down 0.5 percent at $1,943.50.

The dollar index strengthened to its highest in more than one week, making gold more expensive for other currency holders.

The greenback benefited from its status as a safe haven and the conflict in Ukraine that has driven expectations the US Federal Reserve will hike interest rates.