Asian shares struggle to shake off U.S. selloff amid coronavirus comeback

© Reuters. FILE PHOTO: A TV reporter stands in front of a large screen showing stock prices at the Tokyo Stock Exchange after market opens in Tokyo

By Pete Schroeder

(Reuters) – Asian markets look set to continue a downward path on Tuesday after soaring global coronavirus cases and shrinking hopes for a U.S. stimulus deal took a toll on Wall Street and drove up the U.S. dollar.

Australia’s ASX 200 () opened down about 0.6%, while Japan’s () were up 0.04%. The Nikkei 225 index () closed down 0.09% on Monday. The futures contract was down 0.25% from that close​.

Hong Kong’s Hang Seng index futures () <.hsic1> were up 0.1%.

MSCI’s gauge of stocks across the globe was down 1.52%.

U.S. indices fell sharply to open the week’s trading, as anxiety over new record daily COVID-19 cases in the United States, Russia and France weighed on investor appetite.

And while House Speaker Nancy Pelosi is still hopeful an agreement can be reached on a coronavirus relief bill before the Nov. 3 elections, White House economic adviser Larry Kudlow told reporters on Monday that talks have slowed.

“The challenge for markets is that in most cases they are already pricing a very strong economic bounce. The new outbreaks, and the potential for a double-dip recession, directly contradict this assumption,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

The sharp decline set a bleak tone ahead of a busy third-quarter earnings season, with large U.S. tech firms like Apple Inc (O:), Inc (O:) and Google-parent Alphabet Inc (O:) set to report. Microsoft Corp (O:) reports its results Tuesday.

See also  Multi-Blockchain Crypto Collectible Game Integrates TRON and Promises Unique Updates

The Dow Jones Industrial Average () fell 650.19 points, or 2.29%. The S&P 500 () lost 64.42 points, or 1.86%, while the Nasdaq Composite () dropped 189.35 points, or 1.64%.

Renewed coronavirus fears drove investors into a host of safe-haven investments and away from riskier assets, including in the oil market. dropped $1.31, or 3.1%, while U.S. West Texas Intermediate () fell $1.29, or 3.2%. Both contracts fell almost 2.5% last week.

Investors shedding risk gave way to a rise in the safe-haven U.S. dollar compared to other currencies. The rose 0.286%, with the euro () down 0.45% to $1.1806. added 0.1% to $1,902.02 an ounce.

Longer-term U.S. Treasury yields also fell, with the benchmark 10-year yield down 4.3 basis points in afternoon trading at 0.7977%, well below its four-month high reached on Friday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

See also  UK’s struggles more similar to aftermath of WWII than 1970s, economist claims


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more