Asian stocks slide as virus infections surge, Federal Reserve issues warning

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Asia-Pacific shares outside Japan slide 1.2%, after a strong run-up in recent weeks. FMTNews Asian

TOKYO: Asian shares fell sharply on Friday and oil prices extended losses on growing concerns that a resurgence of coronavirus infections could stunt the pace of recovery in economies reopening from lockdowns, or even lead to fresh restrictions.

US stock futures, the S&P 500 e-minis, rose 1.4% in Asian time on Friday after tumbling overnight, but that did little to help sentiment. The Chinese yuan headed for its biggest daily decline in two weeks, underscoring investors’ risk-averse mood in Asia. “So it is not hard to project a ‘second bear wave’ in markets from a ‘second wave’ of infections; as economies re-open, especially in markets that have rebounded … in defiance of all the uncertainties that the world is beset with.”

Coronavirus cases have jumped in several US states in recent days, raising concern among experts who say authorities have loosened anti-virus restrictions too early.

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