Asia Markets Take Fresh Hit As Virus Surge Trumps Vaccine Hope

A surge in coronavirus infections across the United States and Europe hit the Asian market again on Friday, as traders feared another wave of blockades would take the already volatile economic recovery off course.

The rally, fueled by excitement about the potential of vaccines before 2021 and the relief of Joe Biden’s victory in the U.S. election, is the reality that killer disease is widespread while there is light at the end of the tunnel. I gave way.

Some European economies, including Britain and France, are already mostly closed to contain new eruptions, but they continue to record horribly many new cases and measures could be extended. ..

And major US cities, including New York and Chicago, are forced to act as leaders concerned that winter in the Northern Hemisphere is more deadly than spring.

This all means that the economy, which began to show signs of life after a terrible deterioration in the first half of this year, could stumble again, and some observers say the world will see a so-called W-shaped recovery. I’m pointing out.

Anthony Fauci, a top health adviser in the United States, said he was confident that the vaccine would put an end to the pandemic, but that it was important for people to “continue and double public health measures.” It was.

All three major Wall Street indexes ended in the red, but Nasdaq was slightly better as tech companies benefited from betting on people who use gadgets when they were stuck at home. did.

These losses pervaded Asia, and after a week of rebound, profit-taking also played a role.

Tokyo, Sydney, Singapore, Manila and Mumbai were all in the red, but rose in Seoul, Taipei, Wellington and Jakarta.

“Despite some really notable news about the forefront of health care and vaccines this week, investors cheered it up in a fuss … Investors are constantly on the rise in Covid-19 cases I couldn’t shake the discomfort of the emotional side and the new financial restrictions. ” Axi strategist Stephen Ines.

“It feels a bit deflated today as investors are looking for something that should be a winter of discontent. Vaccines because the celebration of the year is likely to be the darkness of a few weeks of holidays. Can’t arrive here early enough. “He added.

Hong Kong and Shanghai were also hit by news that Donald Trump had signed an order banning Americans from investing in Chinese companies that could help the country’s military and security institutions.

The executive order is expected to come into effect on January 11, with Beijing supporting private companies in these activities and “exploiting US investors to fund military development and modernization” through the capital markets. Said that it is obligatory.

The ban reports reports that it covers a list of 31 companies, including telecommunications, aerospace and construction companies. Among the companies on the list, China Mobile plunged nearly 6% in Hong Kong and China Telecom Corporation plunged 9%.

Diseases continue to proliferate while several countries, including the United Kingdom, are reimposing blockade measures, and sedition fears that measures may be extended.
AFP / Holly Adams

Concerns that new US stimuli are unlikely to pass before Biden moves to the White House have been added to the calm mood of the trading floor.

He has reportedly withdrawn from negotiations on a new spending round for a needy economy, as Donald Trump has refused and continues to admit defeat.

“This means that the hope of stimulus now depends on the ability of Senate leader Mitch McConnell and Speaker of the House Nancy Pelosi to find something in common,” said Rodrigo Catril of the National Australia Bank. ..

“But despite the prospect that the US economic recovery will lose momentum as more stringent social restrictions are introduced, the expectations of great stimulus do not look great.”

Tokyo-Nikkei 225: 25,385.87, down 0.5% (closing price)

Hong Kong-Hang Seng Index: 0.3% down 26,080.54

Shanghai-Comprehensive: 3,310.10 down 0.9% (closing price)

Euro / $: Fall from $ 1.1807 to $ 1.1806 at 2230GMT

Pound / dollar: rises from $ 1.3118 to $ 1.3135

Dollar / yen: Fall of 104.99 yen from 105.10 yen

Euro / Pound: Rise from 89.96 Pence to 89.98 Pence

West Texas Intermediate: $ 40.54 / barrel down 1.4%

Brent North Sea Crude: $ 43.07 / barrel down 1.1%

New York-Dow: Down 1.1% to 29,080.17 (closing price)

London-FTSE 100: down 0.7% at 6,338.94 (closing price)

Asia Markets Take Fresh Hit As Virus Surge Trumps Vaccine Hope Source link Asia Markets Take Fresh Hit As Virus Surge Trumps Vaccine Hope

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