Shares collapsed in Asia on Thursday after a strong overnight pullback on Wall Street as new cases of coronavirus in the US USA They rose to their highest level in two months, dampening investor hopes for relatively rapid economic change.
Nikkei 225 NIK from Japan,
fell 1% while Kospi 180721 from South Korea,
it sank 1.8%. Benchmarks in Singapore ITS,
and Indonesia JAKIDX,
The markets of Hong Kong, Taiwan and Shanghai were closed for holidays.
S & P / ASX 200 XJO from Australia,
sank 1.6% after its largest airline, Qantas QAN,
, announced that it plans to cut at least 6,000 jobs and keep 15,000 more workers on extended leave to survive the coronavirus pandemic.
The airline said it will cut costs by billions of dollars and raise new capital, while landing 100 planes for a year or more and immediately withdrawing its remaining six Boeing 747s.
During the night, the S&P 500 SPX,
it fell 2.6% to 3,050.33, returning all of its earnings for the month. The sale followed a drop in the European stock indices. It accelerated with the news that New York, New Jersey and Connecticut will require visitors from nine states with high infection rates to be quarantined for 14 days.
The surge in new infections is fueling concerns that the reopening of previously closed companies to combat the pandemic may have to slow, despite indications that economies are recovering from the easing of blockades in the US. USA And other countries.
“A big problem for investors is that volatility is too expensive to buy right now, making it easier for them to cut and escape their positions in the stock market,” said Stephen Innes of AxiCorp in a comment.
In addition to lingering concerns about trade tensions between the United States and China, reports say the White House is considering new tariffs on $ 3.1 billion worth of exports from France, Germany, Spain and Britain. That helped markets fall out of concern that such a move could spiral into another trade war, IG’s Jingyi Pan said.
“Renewed fears about the spread of COVID-19 and new tariffs reign … to guide mid-week market sentiment as riskier assets lose favor with investors,” Pan said.
The Dow Jones Industrial Average DJIA,
it lost 2.6% to 25,480. The Nasdaq COMP,
, which was coming out of its second all-time high this week, shed 2.2% at 9,909.17.
Despite losing its earnings for June, the S&P 500 is still on track for its best quarter since the fourth quarter of 1998.
The market has been primarily in recovery mode since April as investors focused on the prospects for economic change as broad areas of the economy reopened. But the recent surge in new infections is undermining some of that optimism.
Hospitalizations and the number of coronavirus cases have reached new highs in more than half a dozen US states. USA And new cases across the country are near their peak level of two months ago.
While early hotspots like New York and New Jersey have seen cases decline steadily, the virus is affecting the south and west, and several states set one-day records, including Arizona, California, Mississippi, Nevada, and Texas.
The yield on the 10-year Treasury note fell to 0.67% from 0.69% on Wednesday night. It tends to move with investor expectations for the economy and inflation.
In the energy trade, the US reference crude oil. USA CLQ20,
They fell 23 cents to $ 37.78 a barrel in e-commerce on the New York Mercantile Exchange. It slipped 5.8% to hit $ 38.01 a barrel on Wednesday.
Brent BRNQ20 Crude,
, the international standard, gave 25 cents at $ 40.28 per barrel. It fell 5.4% to close at $ 40.31.
In currency transactions, the USDJPY dollar,
bought 107.19 Japanese yen, going from 107.05 yen. .