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July 10, 2020, 6:10 a.m. EDT

Asian markets fall after Wall Street retreats on economic worries

Stocks down around 1% in Hong Kong, Shanghai

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By Associated Press


AFP/Getty Images
Boats crisscross Victoria Harbour in Hong Kong on Thursday.

Asian stock markets followed Wall Street lower Friday on worries economic recoveries might fade as coronavirus cases increase in the United States and some other countries.

Benchmarks in Shanghai, Tokyo, Hong Kong and Southeast Asia retreated a day after strong gains driven by the rise of U.S. tech stocks.

Global stock prices have recovered most of this year’s losses on optimism about a recovery from the coronavirus pandemic. But forecasters warn the rise might be too big and too fast to be supported by uncertain economic conditions.

On Wall Street, the benchmark S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.80%  lost 0.6% overnight.

“The market is concerned about the uptick in cases globally,” said Stephen Innes of AxiCorp. in a report. “Money is funneling into perceived safe areas of the market like tech, which should hold up broader indexes to a degree.”

The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -1.15%  fell 1.2% and the Nikkei 225 /zigman2/quotes/210597971/delayed JP:NIK +1.88% in Tokyo shed 0.7% to 22,368.44. The Hang Seng in Hong Kong /zigman2/quotes/210598030/delayed HK:HSI +2.11% retreated 1.9% to 25,702.64.

The Kospi /zigman2/quotes/210598069/delayed KR:180721 +1.35% in Seoul lost 1.2% to 2,141.63 and Sydney’s S&P-ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.47%  declined 0.6% at 5,917.60. India’s Sensex /zigman2/quotes/210597966/delayed IN:1 +0.59%  fell 0.3%.

“The market is concerned about the uptick in cases globally,” said Stephen Innes of AxiCorp. in a report. “Money is funneling into perceived safe areas of the market like tech, which should hold up broader indexes to a degree.”

On Wall Street, the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.80%   declined to 3,152.05. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.38%   dropped 1.4% to 25,706.09.

Three out of four stocks in the S&P declined. The biggest losers were oil companies, airlines and other stocks that are most heavily affected by a reopening and strengthening economy.

The Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -1.69%  , dominated by tech stocks that are seen as relatively resilient to the pandemic, added 0.5% to a record 10,547.75.

U.S. government data showed 1.3 million workers filed for unemployment claims last week. That is down from 1.4 million the prior week and a peak of nearly 6.9 million in late March.

The improvements have helped validate investors’ earlier optimism that the economy can recover as states and other governments relax restrictions put in place earlier this year to slow the coronavirus pandemic. Such optimism helped the S&P 500 rally back to within 7% of its record, after earlier being down nearly 34%.

But economists point to a troubling slowdown in the pace of such changes, including moderating declines in the four-week average of jobless claims.

Investors are worried that worsening infection levels in the populous U.S. states of Florida, Texas and California could derail a recovery. Some states are rolling back their reopenings, while others are ordering people arriving from hotspots to quarantine.

Other countries including Brazil and South Africa also report rising case totals. Australia’s populous state of Victoria closed its border with neighboring New South Wales this week to contain an outbreak.

In energy markets, benchmark U.S. crude   lost 91 cents to $38.71 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude /zigman2/quotes/209705582/delayed UK:BRNU20 +0.05%  , used to price international oils, lost 84 cents to $41.51 per barrel in London.

The dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.0207%   declined to 106.74 yen from Thursday’s 107.95.

/zigman2/quotes/210599714/realtime
US : S&P US
3,333.69
-26.78 -0.80%
Volume: 2.90B
Aug. 11, 2020 5:08p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,340.29
-38.96 -1.15%
Volume: 40.05B
Aug. 11, 2020 3:01p
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
22,750.24
+420.30 +1.88%
Volume: 0.00
Aug. 11, 2020 3:15p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
24,890.68
+513.25 +2.11%
Volume: 1.63M
Aug. 11, 2020 4:08p
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,418.67
+32.29 +1.35%
Volume: 843,437
Aug. 11, 2020 3:32p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,138.70
+28.50 +0.47%
Volume: 619.00
Aug. 12, 2020 8:24a
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/zigman2/quotes/210597966/delayed
IN : India: Bombay
38,407.01
+224.93 +0.59%
Volume: 0.00
Aug. 11, 2020 3:30p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,333.69
-26.78 -0.80%
Volume: 2.90B
Aug. 11, 2020 5:08p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,686.91
-104.53 -0.38%
Volume: 430.09M
Aug. 11, 2020 5:08p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
10,782.82
-185.53 -1.69%
Volume: 3.90M
Aug. 11, 2020 5:16p
loading...
/zigman2/quotes/209705582/delayed
UK : U.K. ICE Futures Europe
$ 43.30
+0.02 +0.05%
Volume: 0.00
July 31, 2020 7:29p
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
106.4710
-0.0220 -0.0207%
Volume: 0.0000
Aug. 11, 2020 6:53p
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