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NEW YORK: Asian stocks followed the strong Wall Street selloff on Thursday, as concerns about rising coronavirus infections and new closures in major US cities stifled earlier investor enthusiasm. on the development of the COVID-19 vaccine.
Bearish sentiment triggered a late pullback in stock markets on Wednesday after a spike in new COVID-19 infections prompted New York City, which has the largest school district in the United States, to halt learning. in person starting Thursday.
News of the shutdowns overshadowed Pfizer Inc’s announcement that its COVID-19 vaccine was 95% effective and that the company would apply for emergency clearance from the US in a few days. Pfizer’s vaccine is similar in efficacy to the candidate developed by Moderna Inc.
“It’s like a seesaw, the struggle between the growth of COVID and the excitement for the vaccine really weighs on the market,” said Hilary Kramer, chief investment officer at Kramer Capital Research in New York.
Australia’s S & P / ASX 200 lost 0.5% in early trading, while Hong Kong’s Hang Seng Index futures lost 0.02%. Japan’s Nikkei 225 fell 0.4%.
New York City joined other large school districts in cities such as Boston, Detroit, Las Vegas, Philadelphia who recently canceled in-person learning due to the increase in coronavirus cases. Forty-one U.S. states have reported record daily increases in COVID-19 cases in November, 20 have recorded record daily deaths, and 26 have reported new spikes in hospitalizations, according to a Reuters tally of public health data.
Despite optimistic vaccine developments, the prospect of reopen reversals and new closures weighed on market participants. The top 11 sectors of the S&P 500 closed in negative territory, with energy stocks taking the biggest loss.
The Dow Jones Industrial Average fell 1.16%, the S&P 500 lost 1.16% and the Nasdaq Composite fell 0.82%.
Richmond Federal Reserve Chairman Thomas Barkin said allowing the Fed’s emergency loan programs to end on Dec. 31 could pose risks to financial markets, especially as the pandemic is intensifying.
The dollar moved from previous lows following better-than-expected real estate data in the United States, with the dollar still on track for its fifth straight decline as the Pfizer news gave investors an appetite for risk taking.
The dollar index fell 0.043%, and the euro was down 0.05% to $ 1.1855.
US Treasury yields reversed early declines on optimism about a potential vaccine, and after a weak 20-year bond auction diminished the appeal of safe-haven debt. Benchmark 10-year notes last fell 1/32 in price to yield 0.875%, from 0.872% late Tuesday.
Oil prices rose as news of the vaccine boosted investor appetite, along with hopes that OPEC and its allies would delay a planned surge in oil production.
US crude closed 0.94% higher at $ 41.82 a barrel and Brent was $ 44.34, up 1.35% on the day.
– Reuters
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