NEW YORK: Asian equities were set for a sluggish open on Wednesday, tracking a lower Wall Street session as concerns over rising coronavirus cases and fresh lockdowns dampened the euphoria from vaccine trial breakthroughs.
"We're are coming out of a solid two weeks so the market being down half a percent isn't that bad with the prospect of COVID lockdowns," said Jamie Cox, Managing Partner for Harris Financial Group. Also weighing on sentiment was U.S. data on Tuesday that showed retail sales increased less than forecast in October, with the potential for even further slowing.U.S. consumers also bought motor vehicles at a much slower pace than in previous months. There were increases in sales of electronics and appliances, as well as building materials and garden equipment but households cut back spending on sporting goods and hobbies, clothing, furniture, drinking and dining out.
U.S. Federal Reserve Chairman Jerome Powell said on Tuesday the current surge in coronavirus cases is a big concern, and the economy will continue to need both fiscal and monetary policy support.