· Stocks, oil fall as second wave fears cloud recovery prospects
Asian shares and Wall Street futures fell on Monday as growing fears of a second wave of coronavirus infections revived economic worries, while underwhelming data from China also weighed on investor sentiment.
Monday’s losses follow a strong global rally since late March, fuelled by the central bank and fiscal stimulus and optimism as countries gradually lifted restrictions put in place to curb the spread of the novel coronavirus.
However, concerns are now swirling about a second wave with Beijing on Monday reporting its second consecutive day of record numbers of COVID-19 cases, while new cases and hospitalisations in record numbers swept through more U.S. states.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 2.3%, extending its losses from 0.3% earlier in the day, with Australian shares off 2.2% and South Korea falling 4.8%.
Oil fell more than 3% on Monday, extending losses from last week, on worries renewed outbreaks of the coronavirus could weigh on the recovery of fuel demand.· China stocks fall on fresh virus wave concerns; start-up index hits near 4-mth high
China’s major indexes ended lower on Monday, weighed down by wider losses in other markets in the region, over growing concerns about the resurgence of the coronavirus outbreak.
At the close, the Shanghai Composite index was down 1.02%, while the blue-chip CSI300 index was down 1.2%.
After weeks with almost no new coronavirus infections, Beijing has recorded dozens of new cases in recent days, all linked to a major wholesale food market, raising concerns about a resurgence of the disease.
· Japan shares hit near 3-week low on fears of second coronavirus wave
Japanese shares slipped to near three-week low on Monday as concerns about a spike in new cases of COVID-19 worldwide poured cold water on hopes of a quick recovery from a coronavirus-driven global recession.
The benchmark Nikkei average dropped plunged 3.47% to 21,530.95, its lowest since May 27, slipping below a key support of the 200-day moving average, which stood at 21,755.
As new coronavirus cases resurfaced in China and the United States, worries about a second wave have deepened, prompting fears about prolonged damage to the economy.
The broader Topix lost 2.54% to 1537.89.
· European markets fall sharply as virus concerns linger; Stoxx600 down 2.5%
European stocks were sharply lower on Monday morning amid concerns over a resurgence of the coronavirus in Asia and the U.S. as lockdowns are eased.
The pan-European Stoxx600 fell 2.5% in early trade, with basic resources tumbling 4.1% to lead losses as all sectors and major bourses slid into negative territory.
Markets in Europe are following their Asian and U.S. counterparts lower as concerns over a second wave of coronavirus cases dominate market sentiment. Asian stocks traded lower Monday and U.S. stock futures fell in early morning trading on Monday, pointing to more losses ahead.
Reference: Reuters, CNBC
Thai
Eng