Asia stocks fall after US crude collapses for second day | Malay Mail

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TOKYO, April 22 — Asian share markets slipped to two-week lows today as the floor fell out from under crude prices, exposing the deep economic damage wrought by the global coronavirus health crisis. Skittish investors sought the safety of government debt as Brent oil futures plunged for a second...

Japan's Nikkei slumps 1.3 per cent amid generally poor Asian trading sentiment and global vulnerability. — AFP pic

The dizzying dive in oil has turned investors away from stocks, and has given fresh urgency to bearish voices who are bracing for a catastrophic decline in asset prices as the Covid-19 pandemic wrecks the world economy. “The negative price for May WTI futures was probably an anomaly, but it also was a symptom of bigger underlying issues that the industry must address,” said Arij van Berkel, who leads the energy research team at Lux Research in Amsterdam.

“The plunge in oil prices sparked fresh caution about the stock market. Overnight, companies that have been seen as a winner in the post-corona world, such as Amazon, fell. That is a worrying sign,” said Naoya Oshikubo, senior manager of research at Sumitomo Mitsui Trust Asset Management.As the difficulties of restarting the US economy sank in, US Treasury yields tumbled, with the five-year note hitting a new record low on rising prices for bonds: One of the safest assets.

 

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