SYDNEY - Asian stocks followed their US counterparts lower on Tuesday , with investors on edge as oil futures plunged to unprecedented levels and earnings season continued.
Equities opened lower in Japan, Australia and South Korea. S&P 500 futures edged higher after US stocks fell from six-week highs.South Korea's Kospi index dropped 0.8 per cent.S&P 500 futures rose 0.5 per cent as of 9:03am in Tokyo. The S&P 500 Index fell 1.8 per cent. West Texas crude futures expiring Tuesday turned negative for the first time, primarily because the end of the May contract forces physical receipt at a time when storage capacity is low. June prices fell below US$22 a barrel. Yields on 10-year Treasuries were steady around 0.61 per cent after dropping more than three basis points.
Investors are contending with both the oil crash and signs that coronavirus deaths in some parts of the world, including New York, are slowing, and some lockdowns are being eased. Meanwhile, the US Congress is close to a fresh spending package to offset the pandemic's effects. Meanwhile, the pace of earnings season is about to pick up, with almost one-fifth of S&P 500 companies reporting this week. After the close of US trading, IBM reported a drop in first-quarter revenue and pulled its profit forecast for the year.