Asian stocks have fallen, adding to losses on growing concerns about a new, potentially more contagious strain of the coronavirus, with countries around the world limiting travel from the UK
The outbreaks raise concerns that the global economy may face even worse penalties.
The Nikkei 225 in Tokyo fell 0.5% to 26,595.52. In Hong Kong, the Hang Seng fell 0.2% to 26,262.02. South Korea’s Kospi fell 0.6% to 2,760.93. In Australia, the S & P / ASX 200 was up 0.7% to 6,626.70. The Shanghai Composite Index fell 0.4% to 3,406.30.
With new uncertainties, “investors appear to be more cautious in Asia this morning, becoming more selective and likely to wait for the new mutant virus to be better understood before diving aggressively back into the Airlines, Travel & Leisure-vaccinated cart,” Stephen Innes of Axi said in a comment.
Stocks, oil prices and government bond yields fell on Monday, a sign that investors are uncomfortable about the economy.
The news of the new and potentially more contagious strain of the coronavirus has countries around the world restricting travel from the UK. That has worried traders about the potential economic consequences should it spread to other countries or prove resistant to the current spread of vaccines.
British Prime Minister Boris Johnson placed London and the south east of England in a new level of restrictions after scientific advisers warned they had discovered the new variant of the coronavirus. There is no evidence that the new species’ mutations make it more deadly, but it appears to be easier to infect than others.
The S&P 500 fell 1.4% to 3,694.92. The Dow Jones Industrial Average rose 0.1% to 30,216.45. The Nasdaq composite material fell 0.1% to 12,742.52. The Russell 2000 small cap index rose 0.1% to 1,970.33.
Encouraging news from Washington helped control sales. Congress eventually approved a $ 900 billion emergency relief campaign for the economy, including $ 600 in cash payments for most Americans, additional benefits for laid-off workers, and other financial aid.
Economists and investors have been clamoring for such help for months, and a recent upsurge in talk momentum has pushed stock prices up in anticipation of a deal. Analysts said some traders may have sold to capture profits, with the compromise almost certainly and prices close to the highest they’ve ever been. Even after Monday’s drop, the S&P 500 is only back to where it was earlier this month.
On the other side of the Atlantic, negotiators got past a Sunday deadline to negotiate trade terms for the UK’s exit from the European Union. Investors are fixated on the progress of those talks, as a no-deal Brexit on New Year’s Day could cause massive disruptions for businesses.
Monday was also Tesla’s first trading day since entering the S&P 500 index. The electric vehicle manufacturer is up so much this year, almost 731% since Friday night, that some critics say the price is off. But its inclusion in the benchmark index brought in $ 90.3 billion in transactions as the company immediately became the sixth largest in the S&P 500. Tesla fell 6.5% on Monday.
The yield on the 10-year Treasury remained stable at 0.93%.
Benchmark US crude lost 27 cents to $ 47.70 a barrel in electronic trading on the New York Mercantile Exchange. It quoted $ 1.27 to $ 47.97 a barrel on Monday.
Brent crude, the international standard, fell 23 cents to $ 50.68 a barrel.
The dollar rose from 103.31 yen to 103.41 Japanese yen on Monday. The euro fell from $ 1.2243 to $ 1.2232.
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AP Business Writers Stan Choe and Alex Veiga contributed.