Connect with us

News

Asian Stocks Are Down On The Covid 19 Spread While Wall Street Is Down

Asian stocks slumped throughout the board on Monday, as pessimism set in after mounting COVID-19 infections across the region and Wall Street’s first weekly loss in three weeks.
In early trade, Japan’s Nikkei 225 index fell roughly 1.2% to 27,677.60.
The Kospi in South Korea fell 0.9% to 3,247.68.
The S&P/ASX 200 index in Australia fell 1.2% to 7,261.60.
The Hang Seng Index in Hong Kong dropped 1.6% to 27,561.41, while the Shanghai Composite dropped 0.5% to 3,523.01.
“Asian markets appear to be in for a rough start,” said IG market strategist Yeap Jun Rong.
“This comes as investors focus on many risk factors,” such as increased inflation and more COVID-19 cases, rather than positive triggers such as corporate earnings outperformance.
In Indonesia, Malaysia, and Thailand, as well as regions of Japan, including Tokyo, where the Olympics will begin on Friday, outbreaks are on the rise.
The first cases among Olympic Village athletes were confirmed on Sunday.
“The more transmissible delta variety is postponing the recovery for the ASEAN countries and pushing them further into the doldrums,” said Venkateswaran Lavanya, a Singapore-based economist at Mizuho Bank.
Drops in huge technology firms like Apple and Amazon, as well as banks and industries that rely on consumer spending, accounted for a large chunk of Wall Street’s retrenchment.
The market was also dragged down by energy and industrial sectors, which outweighed increases in health care and utilities.
The S&P 500 index dropped 32.87 points (0.8%) to 4,327.16.
The week finished with a 1% loss.
To 34,687.85, the Dow Jones Industrial Average fell 299.17 points, or 0.9%.
The Nasdaq composite index fell 115.90 points, or 0.8%, to 14,427.24.
The Russell 2000 index of smaller companies underperformed the market, falling 27.06 points, or 1.2%, to 2,163.24.
The index, which had outperformed the market for much of 2021, is now only up 9.5% for the year, considerably below the S&P 500’s 15.2% gain.
Moderna’s stock soared 10.3% after the drugmaker was added to the S&P 500 index, spurring a rush of purchases from fund managers that run portfolios that mirror the index.
This week, there was some good economic news: Americans spent more money on clothing, electronics, and dining out last month as the economy improved and there were less pandemic-related restrictions.
In June, retail sales increased by 0.6% over the previous month, according to the US Census Bureau.
The Department of Commerce announced on Friday that
Wall Street experts were surprised by the uptick, as they had predicted a tiny drop in sales last month.
The focus of investors now shifts to earnings.
The majority of businesses will report their results this week and in the weeks ahead.
Profits in the S&P 500 are predicted to rise 64% from the previous year, according to FactSet.
In the world of energy trade, the U.S. dollar is the gold standard.
The price of crude fell 74 cents to $71.07 per barrel.
Brent crude slipped 82 cents to $72.77 a barrel, the worldwide benchmark.
The United States leads the world in currency trading.
The dollar dropped to 109.90 yen from 110.08 yen.
The euro was worth $1.1803, down from $1.1805.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Must See

More in News