Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Asian Stocks Down Amid Ever-Increasing COVID-19 Numbers

Published 07/07/2020, 10:34 PM
Updated 07/07/2020, 10:37 PM
© Reuters.
AXJO
-
JP225
-
HK50
-
AV
-
KS11
-
SSEC
-
SZI
-

By Gina Lee

Investing.com – Asian stocks were down on Wednesday morning, halting their rally earlier in the week, with investor hopes for a quick economic recovery dimmed by continuous spikes in COVID-19 cases.

Brazilian president Jair Bolsonaro became the latest high-profile figure to contract the virus, and Atlanta Federal Reserve Bank President Raphael Bostic warned on Tuesday that the spike in the number of cases has made business owners “nervous again” and that "there is a real sense this might go on longer than we have planned for.”

There are almost 11.8 million COVID-19 cases globally as of July 8, according to Johns Hopkins University data.

Hong Kong’s Hang Seng Index was down 0.06% by 10:28 PM ET (3:28 AM GMT) with the city dealing with a third wave of COVID-19 cases. It reported 14 new cases on Tuesday.

Meanwhile, a proposal to decouple the HKD from the dollar is making its way to U.S. President Donald Trump’s desk for review.

China’s Shanghai Composite fell 0.31% while the Shenzhen Component was down 0.28%.

Japan’s Nikkei 225 was down 0.27%, with Economy Minister Yasutoshi Nishimura refuting on Wednesday the need to declare a new state of emergency, despite the rising number of cases in the country.

South Korea’s KOSPI fell 0.50%.

Down Under, the ASX 200 slid 0.52%, with Melbourne re-imposing lockdown measures to curb a rise of cases in Australia’s second largest city.

“The second wave of infection will see Victorian economic activity fall sharply and it will continue to lag the rest of Australia,” NAB economist Kaixin Owyong told Reuters.

Other investors struck a more positive note, with the U.S. earnings seasons about to start.

“It’s not unusual for stocks to take a breather at this point,” Susan Schmidt, a portfolio manager at Aviva (LON:AV) Investors, told Bloomberg.

“We could see ourselves in a bit of a trading range in the next couple of weeks,” before U.S. earnings season ramps up, she added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.