Asian stocks and US stock futures fell on Wednesday as concerns about a resurgence of coronavirus cases in some countries cast doubt on the strength of global growth and crude oil demand.
MSCI’s widest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) fell 0.6%. Australian stocks (.AXJO) fell 1.25% and stocks in China (.CSI300) fell 0.46%.
Shares in Tokyo (.N225) fell 1.79% due to the increasing chance that Tokyo, Osaka and surrounding areas will lock up due to a new wave of coronavirus infections.
S&P 500 e-mini stock futures also declined 0.18%.
Crude futures extended a month high in Asian trading after speculation that coronavirus restrictions in India, the world’s third largest oil importer, will hurt energy demand. read more
Recent optimism about rising vaccination coverage in the United States, Britain and Europe is shifting to concerns that record coronavirus infections in India and tightening travel restrictions will hold back the global economy.
“Renewed concerns about the global economic recovery weighed on commodity prices and commodity currencies. Many countries around the world, such as India and Brazil, set new infection and death records,” said Commonwealth Bank of Australia analysts in a statement. research note.
“As long as the virus persists, there is a risk that virus mutants will develop and spread to other countries.”
Falls in Asian stocks followed a gloomy 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 airlines and travel-related stocks fearing a delayed recovery in global tourism
Some tech stocks and companies benefiting from stay-at-home demand could find themselves under further pressure after Netflix Inc (NFLX.O) reported disappointing subscriber growth for its movie streaming service, which dropped its shares 11% in trading outside office hours. 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 its worst daily death toll on Tuesday, with large parts of the country now shut down.
The Canadian dollar, Mexican peso and Norwegian krone stabilized during Asian trading after a fall on Tuesday, but analysts say major oil exporters’ currencies are likely to fall if energy prices continue to fall.
Against a basket of six major currencies, the dollar index traded near a seven-week low, haunted by a dip in US Treasury yields as some investors sought security to hold government debt.
Investors will keep a close eye on an auction of 20-year government bonds later on Wednesday, which will be an important indicator of global demand for fixed income.
Ahead of auction results, the yield on 10-year benchmark Treasury bonds traded at 1.5660%, close to its six-week low. 20-year government bond yields were 2.1531%, close to a seven-week low.
In a sign of increasing risk aversion, spot gold traded at $ 1,778.18 an ounce, close to its seven-week high reached Monday.
Our Standards: The Thomson Reuters Principles of Trust.