The US Shares in Asia plummeted on Thursday following an overnight rebound on Wall Street in the form of new coronavirus cases, reaching their highest level in two months, raising investors’ expectations relatively.
Markets in Hong Kong, Taiwan, and Shanghai were closed for the holidays.
Tokyo’s Nikki 225 fell 1.3% to 22,234.80, and Seoul’s Kospi was down 1.8% to 2,122.48. Australia’s S&P / ASX 200 sank 2% after its largest airline, Qantas, announced it plans to cut at least 6,000 jobs to avoid a coronavirus epidemic and lay 15,000 more workers on expanded furloughs is.
The airline said it would spend billions of dollars and raise fresh capital, while 100 aircraft would have to be withdrawn for a year or more and six of its remaining Boeing 747 aircraft.
The market fell in Southeast Asia, with Bangkok’s SET index down 0.9%.
Overnight, the S&P 500 fell 2.6% to 3,050.33, bringing back all its profit for the month. Sell after a skid in the European stock index. This gave rise to the news that visitors from nine states to New York, New Jersey, and Connecticut would require quarantine for 14 days with high infection rates.
The rise in new infections is worrying that previously closed businesses may have to be reopened to fight the epidemic, despite signs that economies are recovering from a lockdown that the U.S. And other countries are getting easier.
Stephen Inness of AxiCorp said in a comment, “A major problem for investors is that volatility is very expensive right now, so they are making it easy to cut and run from their stock market conditions right now.”
Amid growing concerns over trade tensions between the US and China, the report said the White House is considering new tariffs on exports of $ 3.1 billion from France, Germany, Spain, and the UK. This helped the markets remain submerged in concerns that such a move could spiral into another trade war, IGI’s Jingyi Pan said.
“The risk of COVID-19 spreading and new tariffs reign… in the midst of market sentiment, risky assets as midweek loses favor among investors,” Pan said.
Technology companies, which led the market boom in March, accounted for the largest slice of the US market. Financial, healthcare, communications services, and industrial sector stocks also suffered heavy losses. Energy stocks declined the most as oil prices fell sharply.
Cruise lines, which suffer greatly when travel restrictions are extended, were among the biggest losers in the S&P 500. Norwegian Cruise Line, Carnival, and Royal Caribbean Cruise were each down more than 11%. Hotel operators were also descending rapidly. Wynn Resorts and MGM Resorts International were down more than 8%. The shares of airlines also declined. Delta Air Lines slipped 7.2%.
The Dow Jones Industrial Average fell 2.6% to 25,480. Nasdaq, which was hitting its second high this week, shed 2.2% to 9,909.17. The Russell 2000 index of small-company shares rose 3.4%.
Despite reducing its profit for June, the S&P 500 is still on pace for its best quarter since the fourth quarter of 1998.
The market has been mostly in rally mode since April as investors focused on prospects for an economic turnaround as broader sectors of the economy. But the recent upsurge in new transitions is reducing some of this optimism.
Coronavirus hospitalization and caseloads have reached new heights in more than half a dozen states in the US, and new cases nationwide were at their peak two months ago.
While early hot spots such as New York and New Jersey have seen a steady decrease in cases, with the virus hitting the south and west, several states have set single-day records, including Arizona, California, Mississippi, Nevada, and Texas.
The yield on the 10-year Treasury note fell from 0.69% to 0.67% late Wednesday night. It goes ahead with investors’ expectations for the economy and inflation.
In energy trading, benchmark US crude in electronic trading on the New York Mercant Exchange fell 23 cents to $ 37.78 a barrel. On Wednesday, it slipped 5.8% to $ 38.01 a barrel.
Internationally, Brent crude traded up 25 cents to $ 40.28 per barrel. It fell 5.4% to close at $ 40.31.
In the currency deal, the dollar bought 107.19 Japanese yen from 107.05 yen. The euro slipped from $ 1.1252 to $ 1.1246