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Asian shares mostly lower after US Senate stalemate

Asian shares mostly lower after US Senate stalemate

Most Asian shares were down during Monday’s trading, after the US Senate failed to approve stimulus package, which added to fears about the economic impact of the coronavirus.

The Shanghai Composite Index closed 3.11 percent down at 2,660.17, and Hong Kong, Hang Seng Index decreased 4.90 percent to 21,687.85.

Australia’s S&P/ASX 200 finished 5.62 percent down at 4,546.04 and South Korea’s Kospi index descended 5.34 percent to 1,482.46.

In India, S&P BSE Sensex index slumped by 11.33 percent at 26.515.12, to the record the highest loss among Asian shares until press time.

In Japan, the Nikkei 225 index was 2.02 percent up at 16,887.78, where rise was the result of optimism about not cancelling the Olympic games and referring it to another date so far.

The decline in Asian equities came after the Republicans and Democrats argued over the details of the proposed spending package worth one trillion dollar, which led to their failure to adopt a stimulus package to combat the Corona virus.

The new package is supposed to be provide enough support for workers who will suffer from the predicted recession, while salvaging businesses.

Also, Goldman Sachs forecasts a one percent decline in real GDP worldwide this year.

The Bank also expects real GDP in developed economies to contract "sharply" in the second quarter, including a 24 percent decline in the United States, two and a half times the country's post-war record decline.

Regarding Coved-19 developments, China has recorded 39 new cases and 9 more deaths as of the end of yesterday, according to the country's National Health Commission.

The number of global cases has risen to more than 294,000, and the virus has claimed nearly 13,000 lives, according to the latest WHO figures.

Meanwhile, the dollar index, which measures the performance of six major currencies against the US dollar, dropped 0.18 percent at 103.32.

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