BANGKOK – Stocks surged in Asia on Wednesday after Wall Street closed lower for a second straight day, led by declines in tech companies and banks.
Worsening coronavirus outbreaks in Asia have cast a shadow over prospects for a recovery from the pandemic. The Nikkei 225 in Tokyo was down more than 2% and other benchmarks fell as well.
On Tuesday, the S&P 500 returned 0.7%, pushing the index further below Friday’s record high. Shares of small companies, which have beaten the rest of the market in recent months, have fallen more sharply than in other sectors.
Asian governments are trying to secure the supply of COVID-19 vaccines after seeing infections soar in recent weeks. The rising caseload is straining the medical systems from Japan to India and is leading to a recovery from pandemic precautions such as travel restrictions, quarantine requirements and a darkening of nightlife.
The Nikkei 225 NIK,
in Tokyo lost 2.2%, while Hang Seng HSI in Hong Kong,
decreased by 1.8%. In Seoul, the Kospi 180721,
lost 1.5%, while Sydney’s S & P / ASX 200 XJO,
1.2% lost despite strong sales. The Shanghai Composite Index SHCOMP,
slightly higher at an angle. Shares fell in Singapore STI,
and Indonesia JAKIDX,
“Global equities are still at rock bottom as renewed viruses scared markets overnight,” Axi’s Stephen Innes said in a comment.
Worsening outbreaks in India and Thailand have also put a brake on a travel recovery, which in turn clouds the outlook for oil and fuel prices, he said.
Wednesday the S&P 500 SPX,
closed at 4,134.94. The Dow Jones Industrial Average DJIA,
lost 0.8% to 33,821.30. After an early acquisition, the technology-heavy Nasdaq COMP,
slid 0.9% to 13,786.27.
declined 1.3% as part of a broad decline in technology companies. Banks also accounted for a large portion of the sales, which came as bond yields fell and changed course after rising on Monday.
The yield on the 10-year Treasury fell from 1.60% to 1.56%.
In other trade, US crude oil benchmark CLK21,
lost 51 cents to $ 62.16 a barrel in electronic commerce on the New York Mercantile Exchange. It gave up 76 cents to $ 62.67 a barrel on Tuesday. Raw Brent BRNM21,
the international standard fell 46 cents to $ 66.11 a barrel.
The US dollar USDJPY,
fell to 107.95 Japanese yen from 108.09 yen late Tuesday.