Asian stocks under pressure after spike in coronavirus cases

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Asian stocks were expected to come under pressure on Wednesday, as a spike in new coronavirus infections weighed on sentiment, although U.S. assurances that the China trade deal was intact and upbeat economic data provided some reasons for optimism.

FILE PHOTO: A man wearing a protective face mask, following the coronavirus disease outbreak, walks in front of a stock quotation board outside a brokerage in Tokyo, Japan, May 18, 2020. REUTERS/Kim Kyung-Hoon

“We expect something of a positive start for Asian trade, but we will have overhanging concern about the virus itself and a second wave unfolding,” said Kyle Rodda, market analyst at IG Markets. “The market is clinging on to a recovery as much as it can.”Japan’s Nikkei 225 futures fell 0.02%. Hong Kong’s Hang Seng index futures lost 0.01%.

However, the three major indexes pared gains from highs of more than 1% earlier in the session on Tuesday. U.S. states including Texas and Arizona set records in their outbreaks. The European Union is prepared to bar U.S. travellers because of the surge of cases in the country, putting it in the same category as Brazil and Russia, the New York Times reported on Tuesday.

 

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Laurie_Garrett January Redub.

Laurie_Garrett It is difficult to understand, but 'the price' of the covid is already assumed in the current price of the shares.

China is not Asia. It is One China, a different place.

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