Asian markets extend losses as virus surges in US, Europe

October 28, 2020: The fresh surge in coronavirus cases across the United States and Europe pushed Asian markets further down Wednesday, while investors have essentially given up on the chances of a new stimulus out of Washington.

With US lawmakers unlikely to agree any new rescue package before Tuesday's election, analysts said the new wave of virus infections and lingering uncertainty over the vote would mean equities face a wobbly few days.

European leaders are being forced to revert to strict, economically damaging measures to control the spread of the virus as some record a spike in deaths and new cases.

And with the United States also suffering a Covid-19 resurgence, there is a fear that the already-stuttering global economic recovery will be thrown off track. Some experts have warned of a double-dip recession.

“Covid case counts and hospitalisations continue to rise — these will continue to be closely watched as investors gauge the likelihood of more stringent mitigation measures,” said Yousef Abbasi, a strategist at StoneX.

The impact of this year's lockdowns and travel restrictions was laid bare Tuesday as the World Tourism Organization said tourism had collapsed 70 percent, leading to a $730-billion loss in revenues, while the UN's trade body said foreign direct investment was likely to slump 40 percent.

The Dow and S&P 500 both fell again, though the Nasdaq edged up as traders bet tech firms will benefit from people being forced to stay home.

The losses extended into Asia, with Tokyo, Hong Kong, Shanghai, Seoul, Taipei, Singapore and Manila all in the red.

However, Sydney rose as Australia's second-biggest city Melbourne enjoyed its first day of being open again after a months-long lockdown. Wellington was also up.

AFP/APP

Posted on: 2020-10-28T09:06:00+05:00

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