Stocks in Asia Pacific fell on Monday as the number of coronavirus cases worldwide continues to rise.
In Japan, the Nikkei 225 fell 2.3% on the day to 21,995.04, as shares of the heavyweight index Fast Retailing and conglomerate Softbank Group fell more than 2% each. The Topix index also fell 1.78% to end its trading day at 1,549.22. South Korea’s Kospi declined 1.93% to close at 2,093.48.
Mainland Chinese stocks declined on the day. The Shanghai compound fell 0.61% to approximately 2,961.52, while the Shenzhen component fell 0.518% to around 11,752.36. Hong Kong’s Hang Seng index fell 1.24% from its last hour of trading, with life insurer AIA’s shares down 3.1%.
Meanwhile, Australia’s S & P / ASX 200 fell 1.51% to close at 5,815.
Overall, the MSCI Asia ex-Japan Index decreased 0.93%.
Oil prices fell in the afternoon of Asian trading hours, and international benchmark Brent crude oil futures fell 1.37% to $ 40.46 per barrel. US crude oil futures also fell 1.33% to $ 37.98 a barrel.
Looking at the economic data, retail sales in Japan fell 12.3% yoy in May, according to the country’s Ministry of Economy, Trade and Industry. That compares to an average market forecast of an 11.6% decline, according to Reuters.
Investors continued to monitor developments around the global coronavirus pandemic amid concerns that an increase in cases could affect the reopening of economies. Globally, the coronavirus has claimed more than 500,000 lives as the number of infections exceeds 10 million, according to data compiled by Johns Hopkins University.
In the United States, coronavirus cases recently increased by more than 45,000 in one day, according to data from John Hopkins University. The recent increase in cases in the United States has led some states such as Texas and Florida to close some companies.
“The hardest hit US states have delayed the reopening of their economies. Some cities or states may take the additional step of reimposing closures or other restrictions to curb the spread of the virus and limit pressure on health services. Restrictions, the more slow is the US economic rebound, “analysts at the Commonwealth Bank of Australia wrote in a note.
“A double-dip US recession is possible if widespread restrictions are re-imposed, leading to an increase in the (US dollar),” analysts said. Still, they said that daily consumer spending in virus-affected states “continues to recover despite increasing infections.”
The US Dollar Index, which tracks the dollar against a basket of its peers, was last at 97,176 after rising from below-97 levels last week.
The Japanese yen was trading at 107.15 per dollar as it saw sharp movements between levels below 106.8 and above 107.2 against the dollar last week. The Australian dollar changed hands to $ 0.68181 after hitting a previous low of $ 0.6842.
Correction: This article was updated to reflect that the Asia Pacific market movements were on Monday.
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