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S&P 500 Futures drop to 3,082, down 0.80% on a day, as Tokyo opens for trading on Thursday. The derivation of the US equity benchmark portrays a two-day losing streak while taking rounds to the intraday low as we write. The reason could be traced from increasing fears of the coronavirus (COVID-19) outbreak in the US after updates from Beijing, Japan and Germany have been worrisome.

Texas COVID-19 cases have risen by 3.4%, above the seven-day average of 2.7% while a jump in hospitalization rates in Florida, Arizona and Oklahoma also suggest that another round of the pandemic is brewing in the US. On the other hand, Beijing grounded a major chunk of its flight operations while also recalling a semi-lockdown in the city. Even so, the latest numbers of virus figures from China and Beijing suggest receding pessimism.

Recently weighing the risk-tone sentiment could be a survey of Japanese firms suggests that the deadly virus hurts jobs and wages into the world’s third-largest economy. Elsewhere, the geopolitical tussles between India and China, as well as Korean neighbors, add to the cautious mood of traders.

Considering the aforementioned downbeat catalysts, the risk gauge failed to cheer positive comments from Cleveland Federal Reserve President Loretta Mester and US Trade Representative (USTR) Robert Lighthizer.

In addition to the S&P 500 Futures, the US 10-year Treasury yields and Japan’s Nikkei 225 also portrays the risk-off mood. The US bond yields stay depressed near 0.73% whereas Japan’s equity benchmark flashes 0.55% losses at the press time.

Moving on, a lack of major data/events could keep the risk-tone taking clues from the geopolitical and virus updates for fresh impulse in Asia.