· Asia stocks turn cautious on virus surge, geopolitics
Asian share markets took a cautious turn on Wednesday as a resurgence of global coronavirus cases challenged market confidence in a rapid economic recovery, even as the rebound in U.S. retail sales in May broke all records.
New infections have hit record highs in six U.S. states and Beijing cut flights and closed schools to contain a fresh outbreak in the Chinese capital.
MSCI’s broadest index of Asia-Pacific shares outside Japan went flat, having climbed 2.8% the previous day, with most markets across the region little changed.
· China shares end nearly flat on Bejing's movement curbs to contain fresh virus cases
China shares closed little changed on Wednesday, as investors remained cautious due to Beijing’s curbs on travel and movement in some areas to contain a resurgence in the new coronavirus cases in the capital city.
At the close, the Shanghai Composite index was up 0.14% at 2,935.87.
The blue-chip CSI300 index was up 0.08%, with its financial sector sub-index lower by 0.27%, the consumer staples sector down 0.07%, the real estate index down 0.51%.
· Tokyo shares end lower on auto export slump, geopolitical tensions
Japanese stocks ended lower on Wednesday as automakers dragged following weak export data, while escalating tensions between North Korea and South Korea also doused the market sentiment.
The benchmark Nikkei average closed 0.56% lower to 22,455.76, while the broader Topix lost 0.40% to 1,587.09. The Nikkei had posted its biggest intraday percentage gain in three months in the previous session.
Japan’s exports shrank to the lowest levels in a decade as shipments of automobile to the United States slumped. This offset optimism around an overnight rally on Wall Street, where all three major U.S. stocks hit third consecutive daily gains.
Investors were also rattled by escalating tensions between North Korea and South Korea after North Korea demolished an inter-Korean liaison office and rejected an offer by South Korea to send special envoys, vowing to send troops back to the border.
· European markets edge cautiously higher as geopolitical tensions rise
European stocks edged cautiously higher on Wednesday as global markets keep an eye on geopolitical tensions separately between India and China, and North and South Korea, amid a resurgence of coronavirus cases in Asia and the U.S.
The pan-European Stoxx 600 advanced by 0.2% in early trade, banks adding 0.9% to lead gains while basic resources fell by 0.5%.
European market sentiment is expected to follow the trend seen in Asia overnight, where stocks traded lower following warnings from the International Monetary Fund (IMF) and on concerns surrounding geopolitical flare-ups between neighboring countries in Asia.
· Thailand reports no new coronavirus cases or deaths
Thailand on Wednesday reported no new coronavirus infections or deaths, marking 23 successive days without a domestic transmission.
The country has recorded a total 58 deaths related to COVID-19 among 3,135 confirmed cases, of which 2,996 patients have recovered, said Taweesin Wisanuyothin, a spokesman for the government’s COVID-19 Administration Centre.
Wednesday is the third consecutive day that no cases were reported. All recent cases have been found among Thais in quarantine after returning from abroad.
Reference: Reuters, CNBC
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