New Variant Spreads to 15 Countries
Global Financial Markets Recovering After Panic Sell-Off
[Asia Economy reporters Hyun-ui Cho, Se-hee Jang, Seon-ae Lee] Fear is spreading worldwide with the emergence of the new COVID-19 variant ‘Omicron.’ As the Omicron variant rapidly spreads mainly in Europe, confirmed cases have also appeared in Canada, leading to predictions that infections in the United States are only a matter of time.
On the 29th, Asian stock markets continued to feel the impact of last weekend’s plunge in the New York stock market. South Korea’s KOSPI and Japan’s Nikkei 225 index both dropped more than 1% shortly after opening. Meanwhile, U.S. New York stock futures and Brent crude oil rebounded, showing a significant increase in volatility across global financial markets.
President Moon Jae-in is scheduled to preside over a special quarantine inspection meeting at the Blue House in the afternoon, and the government stated it will take preemptive measures if necessary.
According to foreign media reports on the 28th (local time), the countries with confirmed Omicron infections so far include South Africa, Botswana, the United Kingdom, Germany, Italy, the Czech Republic, Austria, Belgium, Australia, Israel, Hong Kong, the Netherlands, Denmark, Canada, and France?a total of 15 countries.
Omicron was first detected on the 11th and was designated a ‘variant of concern’ by the World Health Organization (WHO) just two days after South Africa reported it on the 24th. In comparison, it took nine months for the Delta variant to be reclassified from a ‘variant of interest’ to a ‘variant of concern.’
According to compiled announcements from various countries, the officially confirmed number of Omicron cases is around 110, with about 1,000 suspected cases. Among these, South Africa, the epicenter of the spread, accounts for 99 confirmed cases and 990 suspected cases, making up the majority.
Most of the global confirmed cases are travelers who visited Africa. Canada announced that two people who recently traveled to Nigeria, located in Central Africa, were infected with Omicron. This raises concerns that the Omicron variant may have spread not only in southern Africa but across the entire continent.
In the Netherlands, at least 13 of 61 passengers who tested positive after arriving from South Africa were confirmed to be infected with Omicron, prompting the immediate implementation of a nighttime curfew after 5 p.m.
In the United Kingdom, two people who traveled to South Africa were infected, and in Italy, one person who traveled to Mozambique was confirmed infected. In Belgium, a confirmed case who traveled to Egypt via Turkey was identified as an Omicron variant carrier.
In the Czech Republic, one person who returned after traveling to Namibia via South Africa and Dubai was confirmed infected, and in Australia, two asymptomatic individuals who returned from South Africa were confirmed as Omicron cases. Israel reported an Omicron infection in a traveler who returned after visiting Malawi.
There is also a possibility of secondary infections. The first confirmed Omicron case in Hong Kong was a traveler from South Africa, and a Canadian entrant quarantined in a room opposite the patient’s hotel room was later found to be infected with Omicron as well.
The United States is also highly likely to see the variant land. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases (NIAID) and the White House’s top medical advisor, told NBC on the same day, “I wouldn’t be surprised if Omicron has already landed. The spread of the variant is ultimately inevitable.”
Looking at the indicators alone, the domestic financial market reflects a recovery in sentiment. At 10:07 a.m. in the Seoul foreign exchange market, the won-dollar exchange rate was 1,192.8 won, down 0.5 won from the previous trading day’s closing price. The 3-year government bond yield also rose by 0.02 percentage points to 1.88% (price decline) compared to the previous day.
The KOSPI also fell more than 1% shortly after opening but quickly recovered losses, recording 2,920.09 at 10:10 a.m., down 0.56%. However, given the high possibility of increased volatility, it is expected to show an unstable trend.
Lee Eok-won, First Vice Minister of Strategy and Finance, said at the macroeconomic and financial meeting on the day, “Until clear analysis is available, it is difficult to rule out the possibility that Omicron will increase volatility in domestic and international financial markets due to lack of information. We will operate a 24-hour monitoring system and respond preemptively.”
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