As China continues with its Covid Zero strategy, Beijing is once under the threat of a lockdown, as new coronavirus infections rise to the highest level in three weeks.

The city recorded 74 infections for Monday, the most since May 22, when Beijing saw a record number of cases for the current outbreak.

Most schools in Beijing delayed a reopening that was planned for Monday, while all sports competitions were halted. Many shopping centres, gyms and other venues were closed, parts of the public transport system were suspended and millions of people were urged to work from home.

The Chaoyang district in eastern Beijing, where the bar is located, began a three-day mass Covid testing drive from Monday.

Meanwhile, most districts in Shanghai suspended dine-in services at restaurants, with the country’s financial hub reporting 17 cases for Monday, down from 37 on Sunday.

Market reaction

Risk sentiment in Asia is seeing a bit of a relief after being hammered on aggressive Fed tightening expectations.

The S&P 500 futures are up 0.25% on the day while AUD//USD is holding the bounce above 0.6900.