Asian shares, US stock futures register dip amid virus scare
August 4, 2020
Finance

Asian shares, US stock futures register dip amid virus scare, Sino-US tension

TOKYO/NEW YORK (JAPAN/US) – Amid the record surge of new coronavirus cases in many US states, Asian shares and US stock futures registered a fall on Friay.

MSCI’s broadest index of Asia-Pacific shares outside Japan recorded a drop of 0.74%. Australian stocks shrivelled by 0.31% as the banking sector was hit by an extension of loan payment deferrals. Japanese stocks were down by 0.58%.

China’s shares too dropped by 0.72% from a five-year high. It is the first dip in more than a week. This comes after state media discouraged retail investors from chasing the market higher and worsening ties with the US.

Euro Stoxx 50 futures showed a dip of 0.03% while German DAX futures remained flat. FTSE futures were down by 0.03%.

As the traders avoided risk and sought safe havens, the Antipodean currencies fell and the yen soared.

“Weakness in financial stocks, with the bank sub-index down 2.5%, comes ahead of next week’s Q2 reporting season that sees JP Morgan, Citigroup and Wells Fargo all report next Tuesday and following news that Wells Fargo is planning to cut ‘thousands’ of jobs starting later this year,” said Ray Attrill, head of FX strategy at National Australia Bank.

In mainland China, the shares dipped on Friday for the first time since June 29. On the previous day, it soared to the highest since 2015

Mainland China shares fell on Friday for the first time since June 29. Shares had surged to the highest since 2015. It was triggered by retail investor enthusiasm and policy support.

(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field

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