Reuters. After the outbreak of coronavirus disease (COVID-19), people wearing protective masks are reflected on a screen showing stock prices outside a brokerage in Tokyo.By Swati Pandey
SYDNEY (Reuters) – Asian stocks were defensive on Monday as investors rallied against the backdrop of a deeper coronavirus-driven recession against the backdrop of the global economy with skyrocketing prices as oil prices fell sharply.
Shares of China started lower as shares of Hong Kong-listed Semiconductor Manufacturing International Corp (SMIC) fell to a post-June 16 low. Trade will be added to the blacklist.
China’s blue-chip index fell 0.3%.
Softbank has bought at least 4 4 billion worth of call options on listed stocks of US technology stocks, according to media reports, falling 0.2% under heavy sales.
Opened in the red. 0.1 lot loss in the stock of Australia 0.1. South Korea was up 0.7%.
After a two-week loss, it was knocked out of a 2-1 / 2-year high last week by MSCI’s broad index of Asia-Pacific shares outside Japan.
World stocks hit record highs last week as the central bank’s stimulus took asset valuations to key levels. Booming tech stocks have cooled, while investors are worried about a developed economic recovery.
Looking at the outlook, the figures show that China’s imports fell 2.1% in August compared to a year earlier, embarrassing expectations of a 0.1% increase as a sign of sluggish domestic demand. Exports have increased by 5.5 per cent as expected.
The S&P 500’s e-mini futures are down 0.1% and the Nasdaq futures are down 0.7%. US markets will be closed on Monday for the Labor Day holiday.
Nasdaq futures were pulled down due to the exclusion of Tesla (Nasdaq 🙂 from the group of companies to be added to the S&P 500.
Analysts at Jefferies (NYSE) expect further expansion in the equity market correction.
“Our risk indicators are starting to turn from their cheerful highs,” Jefferies said.
It added that global equity is not expected to slow down for a while as some orphaned sectors / countries are franchised while rich value sectors break or uninstall.
“On the balance of probabilities, there is even more room in last week’s correction.”
Jefferies said he was shifting the weight on the MSCI All World Index to “strategically bearish” in the short term.
It noted that the US Treasury yield curve of 10 to 5 years as well as the curve of 30 to 5 years has been higher in the last three months in the US.
“We wonder how many moves in both will upset the equity market,” Jefferies said.
This weekend, as investors look for US inflation data, prices for both producers and consumers are expected to remain largely stable.
“Given the sluggish and widespread economy in the labor market for years, it is difficult to see where inflation will come from,” Brown Brothers Harriman said in a note.
“The main thing is that US rates will stay lower for a long time to come,” he said.
Commodity oil prices fell by more than a dollar a month after Saudi Arabia cut weekly utsa monthly prices in five months of supply to Asia, the lowest level since July.
Passive optimism about the recovery of demand amid the coronavirus epidemic also weighed heavily. 1% fell to 39.36 dollars per barrel from 0.8% skided to $ 42.30.
Policy meetings in Canada on Wednesday and the European Central Bank the next day were also on the radar of investors, both of whom expected policy to remain stable.
The action in the forex market was muted.
In currencies, the domestic yen was flat at 106.28 against the yen on Tuesday, ahead of a heavy week of macroeconomic data with current account and gross domestic product figures.
The euro was at 8 1.138 at38 before Brexit’s new talks with the European Union on Monday, while the British pound was 0.3. %% weaker.
