Asian stocks set to fall as Wall St snaps 3-day winning streak

By Katanga Johnson WASHINGTON (Reuters) - Asian stocks were set to dip on Thursday after a choppy Wall Street session as spiking coronavirus cases and prospects of new lockdowns erased earlier confidence about a global economic recovery. Optimism about a quick economic comeback has been tempered by more global cases of the coronavirus, with an outbreak in Beijing and a rising infections in U.S.

Reuters June 18, 2020 06:05:15 IST
Asian stocks set to fall as Wall St snaps 3-day winning streak

Asian stocks set to fall as Wall St snaps 3day winning streak

By Katanga Johnson

WASHINGTON (Reuters) - Asian stocks were set to dip on Thursday after a choppy Wall Street session as spiking coronavirus cases and prospects of new lockdowns erased earlier confidence about a global economic recovery.

Optimism about a quick economic comeback has been tempered by more global cases of the coronavirus, with an outbreak in Beijing and a rising infections in U.S. states that are reopening their economies.

"A cautious tone has re-emerged in markets amid a quiet night for data," Tapas Strickland, a director at the National Australia Bank, said in a note. "Markets are still trying to grapple with the implications of rising coronavirus infections and hospitalization rates in the southern parts of the U.S. given there is a high bar to re-impose lockdowns."

Australian S&P/ASX 200 futures were down 0.6%, while Japan's Nikkei 225 futures were off 0.02%.

Hong Kong's Hang Seng index futures <.HSI> <.HSIc1> were down 0.23%.

U.S. Treasury yields edged lower and crude prices fell on concerns over the fresh outbreaks, but drew some support from stimulus measures and positive tests of a drug trial for dexamethasone that could save some critically ill COVID-19 patients.

The dollar rose from early lows as investors wary of wider geopolitical risks sought its relative safety, but pared gains by the session's end.

Rising tensions between North Korea and South Korea spurred demand for safe-havens, as did clashes between Indian and Chinese troops at a disputed border site.

"This can all change as the market is very sensitive to headline risk," said Brian Battle, the trading director Performance Trust Capital Partners in Chicago.

"Don't confuse lack of volatility with stability. The market is very unstable with news of the virus outbreak worsening, which could lead to less global trade. But news of no second coronavirus wave in the U.S. could lead to a smoother recovery."

On Wall Street, The Dow Jones Industrial Average <.DJI> fell 0.65% while the S&P 500 <.SPX> lost 0.36%.

Both U.S. indexes opened modestly higher, waffled throughout the morning and turned positive in afternoon. By the final hour of trading, however, both indexes had slipped.

The Nasdaq Composite <.IXIC>, which continued to trade higher before paring its gains, added 0.15%, by the closing bell.

The pan-European STOXX 600 index <.STOXX> closed up 0.74% while emerging market stocks rose 0.48%.

Oil prices swung in and out of the red amid an increase in U.S. crude inventories.

The dollar index <=USD> rose 0.11%, with the euro down 0.05% to $1.1237. The Japanese yen strengthened 0.06% versus the greenback at 106.91 per dollar, while Sterling was last trading at $1.2547, down 0.06% on the day.

Benchmark 10-year notes yielded 0.7331%, from 0.733% late on Wednesday. The 10-year German Bund rose 0.7 basis point to yield -0.418. [GVD/EUR]

U.S. crude recently fell 0.55% to $37.75 per barrel, while Brent was flat on the day.

U.S. gold futures gained 0.05% to $1,730.00 an ounce.

(Reporting by Katanga Johnson; Editing by Sam Holmes)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.