Shares fell in Asia on Monday, tracking losses on Wall Street as rising virus cases cause some US states to backtrack on pandemic reopens.
Nikkei 225 NIK from Japan,
sank 1.8% and the Hong Kong Hang Seng HSI Index,
fell 1.2%. The SHCOMP composed of Shanghai,
fell 0.7% while Kospi 180721 of South Korea,
decreased 1.6%. Benchmarks in Taiwan Y9999,
Singapore ITS,
and Indonesia JAKIDX,
fell, and Australia’s S & P / ASX 200 XJO,
fell 2%.
Investors have been trusting that companies will continue to reopen, helping fuel the recovery from the worst global recession since the Great Depression of the 1930s.
But the S&P 500 fell 2.4% on Friday when Texas and Florida changed course and repressed bars again in the nation’s largest recall to date. The new coronavirus has emerged in many places, especially in the southern and western United States.
Concern has deepened as the number of confirmed cases exceeded 10 million, with more than 500,000 deaths reported by COVID-19, according to a count by Johns Hopkins University believed to be underestimating the problem due to problems with testing. and a large number of asymptomatic patients. cases.
Even when virus outbreaks occur, economic data, which slows down daily pandemic measures, indicates a recovery, albeit a fragile one.
“Conflicting signals between the spread of Covid-19 and economic data continue to keep risk sentiment and consequently markets stagnant in late June,” said Jingyi Pan of IG. “However, when it comes to weekend tracks, however, breaking the 10 million mark for global COVID-19 cases had tipped the balance in the direction of reducing risk to markets coming in on Monday. ”
China reported that earnings of major industrial companies rose 6% in May from a year earlier, to 582.3 billion yuan ($ 82.3 billion) as demand rebounded and costs remained relatively low. That was higher than a 4.3% drop in April.
China’s oil refineries and other heavy industries have benefited from falling oil and other commodity prices as world demand has eased amid the pandemic. But profits fell more than 19% in January-May, the National Bureau of Statistics reported.
Shares on Wall Street collapsed on Friday as rising infections and the new precaution to contain the outbreaks injected fresh nervousness into a market that has risen since April, for the most part, in hopes of a quick recovery.
The S&P 500 SPX,
It fell 74.71 points to 3,009.05, although it is still on pace for its best quarter since 1998. The Dow Jones Industrial Average DJIA,
He had his worst day in two weeks, losing 2.8% to 25,015.55. The Nasdaq COMP,
, which hit a record high earlier this week, fell 2.6% to 9,757.22.
Finance companies were among the biggest declines after the Federal Reserve ordered many of the nation’s largest banks to suspend buybacks of their shares and limit dividend payments for several months.
The number of new confirmed coronavirus cases per day in the US has surpassed 40,000, according to the Johns Hopkins count, eclipsing the established mark during the deadliest stretch in late April. Deaths and hospitalizations have increased in some parts of the country, especially in the south and west.
The stock market is likely to remain volatile as traders weigh up the ups and downs in the pandemic’s trajectory.
Reflecting caution on that outlook, the yield on the 10-year Treasury note fell to 0.64% from 0.65%. Yield tends to move with investor expectations for the economy and inflation and had been above 0.7% for most of last week.
Concern that a pullback in the reopening of companies could hamper energy demand is driving oil prices down. Benchmark for US crude for August delivery CLQ20,
it lost 62 cents at $ 37.87 a barrel in e-commerce on the New York Mercantile Exchange. It fell 23 cents on Friday to hit $ 38.49 a barrel.
Brent crude oil for delivery in August BRNQ20,
it dropped 58 cents to $ 40.35 a barrel.
In currency transactions, the USDJPY dollar,
bought 107.17 Japanese yen, up from 107.20 yen on Friday.
.
