Asian stocks and US futures fell on Wednesday as concerns about the resurgence of coronavirus cases in some countries cast doubt on the strength of global growth and crude oil demand.
The largest MSCI index of Asia-Pacific equities outside Japan (.MIAPJ0000PUS) fell 0.6%. Shares in Australia (.AXJO) fell 1.25% and shares in China (.CSI300) fell 0.46%.
Stocks in Tokyo (.N225) fell 1.79% due to the growing likelihood that Tokyo, Osaka and surrounding areas would be blocked due to a new wave of coronavirus infections.
The S&P 500 e-mini futures stock also fell 0.18%.
Expanded gross futures fall from a one-month high in Asian trading, speculating that restrictions on coronavirus in India, the world’s third-largest oil importer, will affect energy demand. Read more
Recent optimism about rising vaccination rates in the United States, the United Kingdom and Europe is leading to concerns that coronavirus infections in India and tightening travel restrictions will act as a brake on the global economy.
“Renewed concerns about the global economic recovery have affected commodity prices and currencies. Many countries around the world, such as India and Brazil, have set new records for infections and deaths,” analysts at the Commonwealth Bank of Australia said in a statement. a research note.
“As long as the virus persists, there is a risk that the mutant virus will develop and spread to other countries.”
The decline in Asian stocks followed a declining day on Wall Street. The Dow Jones industrial average (.DJI) fell 0.75%, the S&P 500 (.SPX) lost 0.68%, and the Nasdaq Composite (.IXIC) fell 0.92% on Tuesday as investors sold the companies. and travel-related actions due to fears of a delayed recovery in global tourism.
Some tech companies and companies that have benefited from a home application may face further pressure after Netflix Inc (NFLX.O) reported a disappointing increase in subscribers for its movie streaming service, which reduced its shares with 11% in after-hours trading. Read more
US crude oil fell 0.4% to $ 62.42 a barrel, while Brent crude oil fell 0.26% to $ 66.40 a barrel.
India, the second most populous country in the world and a major energy consumer, reported the worst daily death toll on Tuesday, with large parts of the country now blocked.
The Canadian dollar, Mexican peso and Norwegian krone remained in Asian trading after falling on Tuesday, but analysts say more declines are the currency of major oil exporters if energy prices continue to fall.
The dollar index against a basket of six major currencies traded for almost a minimum of seven weeks, affected by a decline in US Treasury yields, as some investors sought the security of government debt.
Investors are closely following a 20-year treasury auction later on Wednesday, which will be an important indicator of global fixed income demand.
Prior to the auction results, the yield on treasury notes at the reference 10 years traded at 1.5660%, close to a minimum of six weeks. 20-year Treasury yields stood at 2.1531%, close to a seven-week low.
As a sign of growing risk aversion, spot gold traded at $ 1,778.18 per ounce, close to a seven-week high on Monday.
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