TOKYO – Asian stocks were mostly lower on Tuesday, echoing pullbacks on Wall Street as concerns grow about the increase in coronavirus cases in the region.
The Japanese reference Nikkei 225 NIK,
edged down 0.3% in morning trading, as the government prepared to declare a state of emergency in Tokyo and several surrounding areas.
slipped 0.2%. Kospi 180721 from South Korea,
decreased by 0.3%. Hang Seng HSI from Hong Kong,
fell nearly 0.3%, while the Shanghai Composite SHCOMP,
dipped 0.1%. Stocks slipped at Singapore STI,
but increased in Taiwan Y9999,
and Indonesia JAKIDX,
Hong Kong shares of China Mobile 941,
China Telecom 728,
et China Unicom 762,
surged after the New York Stock Exchange abandoned its plan to delist telecommunications stocks following an executive order from President Donald Trump.
The Japanese prime minister said the government is considering declaring a state of emergency to help curb the spread of infections. The move is expected this week. Tokyo Governor Yuriko Koike and the Governors of Saitama, Chiba and Kanagawa urged the national government over the weekend to declare the emergency after the capital recorded a daily record of 1,337 cases on New Year’s Eve.
US stocks have retreated from their recent all-time highs as big swings return to Wall Street at the start of a year when the dominant expectation is that a strong economic rebound sweeps the world.
“With the seven-day average of new cases still hanging in the 600K zone around the world, few expect the market to be spared from the resurgence of COVID-19 fears,” said Jingyi Pan, senior strategist market at IG in Singapore.
“Certainly with the merging of factors ranging from the UK’s third nationwide lockdown announcement, US hospitalizations hitting a record high and Tokyo considering a state of emergency, all of this had been proof that the pandemic was still raging inducing a mood of risk to trigger the year for US indices, ”Pan said.
The S&P 500, which ended 2020 at a record low, slipped 1.5% after falling 2.5% earlier. This is the biggest drop in the benchmark since the end of October. Technology companies accounted for a significant portion of sales, along with industrials, communications services, healthcare and others. Only the energy sector of the S&P 500 managed to post a gain.
The sale comes as coronavirus cases continue to rise at frightening rates around the world, threatening to bring more foreclosure orders that would punish the economy. The worsening numbers also raise the possibility that Wall Street has been overly optimistic about the big economic recovery it is forecasting from COVID-19 vaccines. Tuesday’s upcoming election to determine which party controls the Senate may also contribute to volatility.
“We have an uncertain start to the year here,” said Lindsey Bell, chief investment strategist at Ally Invest. “Investors are looking for a reason to lock in profits. The sale is probably a bit overkill. ”
Le S&P 500 SPX,
fell 55.42 points to 3,700.65. The Dow Jones Industrial Average DJIA,
also fell from its high set last week, losing 1.3%, to 30,223.89. At one point, he was down 724 points. The high-tech Nasdaq composite COMP,
lost 1.5% to 12,698.45.
Small business stocks, which have posted strong gains in recent weeks, have also fallen. The Russell 2000 RUT Index,
of small businesses fell 1.5% to 1,945.91.
Investors were hopeful that the vaccines will allow daily life around the world to slowly return to normal. This has helped trigger a recent rally in inventories of travel-related businesses, small businesses and other industries left behind during much of the pandemic.
In the United States, regulators have already approved two other vaccines. China last week gave the green light for its first nationally developed vaccine. Others are also tested.
In energy trading, the American benchmark CLG21 crude,
added 14 cents to $ 47.76 a barrel for electronic trading on the New York Mercantile Exchange. He lost 92 cents to $ 47.62 on Monday.
Brent brut BRNH21,
the international standard, rose 11 cents to $ 51.20 a barrel.
In currency trading, the US dollar USDJPY,
rose to 103.13 Japanese yen from 103.13 yen on Monday night.