Asian shares were mostly low on Wall Street on Tuesday, as concerns about an increase in Coronavirus cases in the region were increasing.
Japan’s benchmark Nikkei 225 dipped 0.1% to 27,232.38 in morning trade as the government prepared to declare a state of emergency in Tokyo and many surrounding areas.
Australia’s S&P / ASX 200 slipped 0.2% to end at 6,669.90. South Korea’s Kospi gained less than 0.1% to 2,944.98. Hong Kong’s Hang Seng fell nearly 0.1% to 27,448.20, while the Shanghai Composite fell 0.1% to 3,498.65.
The Prime Minister of Japan has said that the government is considering declaring a state of emergency to help prevent the spread of infection. The move is expected this week. Yuriko Koike of the Tokyo Government and the governors of Saitama, Chiba and Kanagawa over the weekend asked the national government to declare an emergency, as the capital saw a daily record of 1,337 cases on New Year’s Eve.
US stocks pulled back from their recent record highs, as big swings return to Wall Street early in a year where a powerful economic rebound is expected to sweep the world.
IGI’s senior market strategist in Singapore, Jingyi Pan, said, “With average new cases of seven days, there is still a possibility of hanging in the 600K zone globally, with some hoping the market COVID-19 to address fears will do it.”
“Certainly, with the UK’s third nationwide lockdown declaration, disparities arising from US hospitalization and factors exacerbating Tokyo’s state of emergency, all of this is still evidence to induce the risk-free mood of the inflammatory epidemic. Pan said to start the year for US indices.
The S&P 500, which ended at an all-time high in 2020, slipped after dropping from 1.5% to an earlier 2.5%. This was the biggest drop in the benchmark index since the end of October. Technology companies accounted for a large share of sell-offs, along with industrial, communications services, healthcare and other stocks. Only the S&P 500’s energy sector managed to realize a profit.
Coronavirus cases as sales continue to climb at horrific rates worldwide, threatening to bring in more lockdown orders that would taint the economy. The worsening numbers also increase the likelihood that Wall Street is overly optimistic about the large economic recovery due to COVID-19 vaccines. Tuesday’s upcoming runoff election to determine which party controls the Senate may also contribute to instability.
“We got a great start here,” said Lindsay Bell, chief investment strategist at Alli Investment. “Investors are looking for a reason to lock in profits. Sales are probably slightly higher. ”
The S&P 500 fell 55.42 points to close at 3,700.65 points. The Dow Jones Industrial Average also fell 1.3%, to 30,223.89, from its record set last week. At one time it was down 724 points. The Tech-Heavy Nasdaq Composite closed down 1.5% at 12,698.45.
In recent weeks, the shares of the small company which made solid gains also fell. The Russell 2000 index of small companies declined 1.5% to 1,945.91.
Investors are hoping that vaccines will allow daily life around the world to slowly normalize. This has helped in the recent recovery for stocks of travel-related businesses, small companies and other industries, which have been left behind for much of the epidemic.
In the United States, regulators have already approved two other vaccines. China gave the green light last week for its first home-grown vaccine. Others are also being tested.
In Energy Trading, benchmark American crude added 14 cents to $ 47.76 a barrel in electronic trading on the New York Mercantile Exchange. It rose 92 cents to $ 47.62 on Monday.
Brent crude rose 11 cents to $ 51.20 per barrel internationally.
In currency trading, the US dollar rose to 103.13 Japanese yen from 103.13 yen late on Monday night. The euro is priced at $ 1.2268 from $ 1.2249.