Asian stocks and future U.S. stock markets fell on Wednesday as concerns about the resurgence of coronavirus cases in some countries called into question the strength of global growth and demand for crude.
MSCI’s broader Asia-Pacific stock index outside of 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 will be blocked due to a new wave of coronavirus infections.
S&P 500 online stock futures also fell 0.18%.
Gross futures increased the decline from a one-month high in Asian trade with speculation that coronavirus restrictions 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, Britain and Europe worries 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 affected commodity prices and currencies. Many countries around the world, such as India and Brazil, set new records for infections and deaths,” the analysts at the Commonwealth Bank of Australia in a research note.
“As long as the virus persists, there is a risk that mutant viruses will develop and spread to other countries.”
Falling Asian stocks continued one day to baffle 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. investors sold airlines and travel-related stocks for fear of a delayed recovery in global tourism.
Some tech stocks and companies that benefited from the demand to stay home could face additional pressures after Netflix Inc (NFLX.O) reported disappointing subscriber growth for its movie streaming service , which dropped its shares by 11% in overtime trading. Read more
U.S. crude fell 0.4% to $ 62.42 a barrel, while Brent crude fell 0.26% to $ 66.40 a barrel.
India, the world’s second most populous country and a major energy consumer, reported its worst daily deaths on Tuesday, with large parts of the country now closed.
The Canadian dollar, the Mexican peso and the Norwegian krone remained stable during Asian trade after falling on Tuesday, but analysts say the fall in foreign exchange from major oil exporters will slow if energy prices continue to fall .
The dollar index against a basket of six major currencies traded near a seven-week low, affected by a decline in U.S. Treasury yields as some investors sought the security of keeping government debt .
Investors are watching a 20-year cash auction closely on Wednesday, which will be a major indicator of global fixed-income demand.
Prior to the auction results, the yield on 10-year Treasury notes was trading at 1.5660%, close to a six-week low. 20-year Treasury yields stood at 2.1531%, close to the seven-week low.
As a sign of growing risk aversion, spot gold was trading at $ 1,778.18 per ounce, close to a seven-week high reached on Monday.
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