Asian Stocks Drop Amid COVID Fears
As COVID cases surge across America, Europe, and Asia, worries about economic instability rise once more. There was news of a potential vaccine and expectations that the U.S. will continue its business-favoring policies following its election. The couple has caused a slight uptick in many markets. However, the fears have negated the positive growth the market has experienced a few days prior. That caused the Asian stock market to open lower on Friday.
Axi’s Stephen Innes commented on the situation stating that investors are preparing for a winter of discontent. He added that he eagerly awaits the potential vaccine, for reasons even beyond market worries.
What do experts say about Japan
Japan had a case peak on Thursday. While the country is among the ones that handled the pandemic the best, it recorded over 1,660 cases on the day. Some suspect that the country’s push to discount internal travel may have been the spike’s cause. The fact that Tokyo and Hokkaido were most affected backs up those claims.
Nobuhiko Kuramochi, Mizuho Securities’ market strategist, commented on the situation. He stated that the potential inability of the U.S.’ two major political parties to agree on further economic is another factor causing pessimism. However, according to Mr. Kuramochi, energy, real-estate, and transportation-related issues were all falling on the Tokyo Stock Exchange.
As for some more definitive stats, a look at Japan’s benchmark, Nikkei 225, shows us a drop of 1%. Hong Kong’s Hang Seng and Shanghai Composite have also seen dips, with 0.4% and 0.7%, respectively. Kospi in South Korea managed to come out as a winner, although by a slim margin of 0.2%. Other countries in Asia, such as Malaysia, Singapore, Indonesia, and Taiwan, showed mixed stock performance. As for Asia’s neighbor in Australia, its S&P/ASX 200 recorded results that were quite similar, showing a drop of 0.3%.
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