Global stock sales in Asia’s Covid Control, U.S. Bounce by Futures Writers

By Tom Westbrook and Pete Schroeder

SINGAPORE / WASHINGTON (Reuters) – Asian stock markets fell on Thursday, but not as quickly as the overnight rally on Wall Street, as oil surged in Asia and US stocks rallied.

Outside of Japan, MSCI’s broad index of Asia-Pacific shares fell 1%. Japan’s Nikkei () fell 0.8% and Hong Kong (), Sydney (), Shanghai () and Seoul () fell 1.5%.

It is heavy but drop of S&P 500 index. (% Drop () or 2.3% decline by Germany’s DX () which has pushed European stocks to their lowest level since the end of May.

S&P 500 futures () and China’s economy is steaming up thanks to increased volatility by traders and a less gloomy mood around Asia, which turned 1% again.

Rob Carnell, chief economist for Asia at Dutch bank ING, said Asia does not really participate in this second or third wave story because its covid is largely under control.

“As a result, the local economy seems reasonable. Exports will remain soft … but locally they are still doing well and doing much better compared to (Europe and the US).”

Oil rose to a four-month low overnight and the risk-sensitive Australian Australian and New Zealand dollars rose by nearly a quarter.

Still, both currencies, right now, have led to weekly losses against the dollar and so has the euro, as concerns about a new lockdown come as a surprise to investors.

In France, from Friday people will be required to stay in their homes, except to buy essentials, seek medical help or exercise. Germany will close bars, restaurants and theaters from November 2-30.

“Until yesterday, the market was traveling in the hope that the improvement of health care services in dealing with the epidemic would prevent a serious lockdown,” said Rodrigo Catrill, strategist at National Australia Australia Bank (OTC) FX.

“At least in Europe, this dynamic has changed now … The question now is whether the US states will follow suit.”

Fundamentals

Central Bank meetings and economic data will be the main focus later on Thursday, U.S. It will also push investors with uncertainty about the November 3 election.

Bank of Japan will maintain its massive stimulus program and vow to take further action if defaults are threatened due to the economic consequences of the virus.

Investors expect the European Central Bank to take new measures and instead signal action in December, which is likely to keep the euro in check.

The common currency reaches a 10-day low on the dollar and a 100-day low on the night yen, before recovering slightly. He last bought 1.1751.

German unemployment and inflation data, the European Confidence Survey and the U.S. Previous GDP figures will also be closely watched – U.S. The figure is likely to show record growth, but still leave the economy where it started in 2020.

Michael McCarthy, a Sydney-based strategist at CMC Markets, said any disappointment in the numbers could have a sharp impact on the market given the current weakness.

Investors are also flocking to the U.S. Is increasingly wary of the outcome of the election campaign that could unleash a wave of risk-taking sales.

Wall Street’s “fear gauge”, the CBO Volatility Index (), reached its highest level since Wednesday on June and the increase in the proposed currency volatility indicates that a wild ride is expected.

The one-week yuan signaled volatility A five-year high on Thursday.

U.S. The bond market, however, was disgusting as investors watched the last day of the polls and borrowed big government for coronavirus relief spending, no matter who won.

Benchmark U.S. The 10-year yield () rose overnight and added a basis point on Thursday to 0.7894%.

Seema Shah, chief strategist at Principal Global Investors, said, “Looking ahead, the volatility of participating in the elections has increased and will probably decrease in the wake of the elections.”

“Markets will soon re-enter the path set by the fundamentals rather than the election news flow.”