Global stock markets fell sharply on Monday as fears of new lockdowns in China added to concerns over the health of the world economy.
China’s benchmark share index posted its biggest one-day tumble since February 2020, after Beijing’s biggest district began mass testing for Covid-19 because of a rise in infections in the capital.
The CSI 300 index fell by 4.9% to hit its lowest level since late May 2020, as authorities ordered that residents in Chaoyang, home to 3.45 million people, should be tested three times this week. Raw materials producers, technology companies and industrial groups were among the major fallers.
Fears that restrictions will be imposed in Beijing also prompted panic buying at supermarkets, as residents braced for curbs similar to those implemented in Shanghai, where a lockdown has entered its fourth week.
On Sunday, a municipality official warned that Beijing’s outbreak was “spreading stealthily” from…