Asia Markets: Asian markets follow Wall Street downhill amid worries about reopening economy

Asia Markets: Asian markets follow Wall Street downhill amid worries about reopening economy

13 May    Finance News

Asian markets fell in early trading Wednesday, as investors took remained cautious as the world’s economies slowly start reopening from coronavirus-related shutdowns.

Japan’s Nikkei JP:NIK dropped 0.8%, while Hong Kong’s Hang Seng Index HK:HSI rose slightly. The Shanghai Composite CN:SHCOMP declined 0.2% while the smaller-cap Shenzhen Composite CN:399106 was about flat. South Korea’s Kospi KR:180721 gained 0.1%, while benchmark indexes fell in Singapore SG:STI and Indonesia ID:JAKIDX but rose in Taiwan TW:Y9999 . Australia’s S&P/ASX 200 AU:XJO slid 1%.

Stocks on Wall Street sank sharply Tuesday, as the nation’s top public health officials warned of the near-certainty of deadly new coronavirus outbreaks if U.S. businesses open up before it’s safe, while Fed officials warned that the economy was in dire straits if businesses stay shut.

The Dow Jones Industrial Average US:DJIA fell more than 450 points for its worst one-day percentage loss since May 1. The S&P 500 US:SPX and Nasdaq US:COMP both lost more than 2%, with the Nasdaq snapping a six-session winning streak.

“Asian stocks are following their U.S. peers lower after warnings against a premature re-opening of the economy and downbeat and unsettling for risk comments from regional Federal Reserve chiefs,” wrote Stephen Innes, chief global markets strategist at AxiCorp, in a note.

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