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Asian Stocks Fall As Covid-19 Infections Surpass 10M

Asian Stocks Fall As Covid-19 Infections Surpass 10M

Asian stocks were down at the beginning of the week, with mounting worries of Covid-19 as the infections surpassed 10 million and as key U.S. States re-imposed lockdown restrictions.

Hong Kong’s Hang Seng Index plunged 1.01 percent to 24,301.28, while the Shanghai Composite Index closed 0.61 percent down at 2,961.52.

Australia’s S&P/ASX 200 finished 1.51 percent lower at 5,815.00, and South Korea’s Kospi index descended 1.93 percent to 2,093.48.

In Japan, Nikkei 225 index slumped 2.30 percent to 21,995.04 points.

The decline in Asian shares was influenced by the retreat in US shares to the lowest level in a month on Friday, amid heightened concerns about a second wave of coronavirus infections, following a marked rise in cases in Texas, Florida, Arizona and California.

The re-imposition of restrictions in Texas, Florida and Arizona have added to concerns that the U.S. is currently experiencing a second wave after flattening the curve, as the Covid-19 cases are edging up by 40,000 per day.

Worldwide, the aggregate coronavirus infections have reached 10,258,151, with fatalities of 504,613, where the U.S., Brazil and India led the surge.

The risk-off sentiment among investors has pulled the MSCI world shares index to its lowest level in two weeks.

The announcement of the People’s Bank of China that the central bank would adopt new monetary measures to ensure liquidity reaches the real economy failed to ease the jittery situation.

Tomorrow, eye will focus on Federal Reserve Chairman Jerome Powell and U.S. Treasury Secretary Steven Mnuchin as the testify before the House Financial Services Committee.

On Thursday, the U.S. jobs report will provide a clear picture about the labor market in June, as markets will be closed on Friday due to the U.S. Independence Day holiday.

The dollar index traded lower for the first time in four sessions at 97.26, while the green currency slipped 0.17 percent versus the offshore yuan to 7.0740.

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