TOKYO/WASHINGTON--Asian stocks and Wall Street futures fell on Wednesday as spiking coronavirus cases in some U.S. states and China crushed hopes of a quick global economic comeback from the pandemic.

S&P 500 mini futures fell 1.2 percent in early Asian trade while MSCI’s broadest index of Asia-Pacific shares outside Japan lost as much as 1 percent.

Japan’s Nikkei lost 1.3 percent while in mainland China, bluechip CSI300 shares shed 0.1 percent in early trade.

On Wall Street, the S&P 500 lost 0.36 percent on Wednesday but tech-heavy Nasdaq added 0.15 percent due to hopes of increased demand for various online services due to the epidemic.

Several U.S. states including Oklahoma, where U.S. President Donald Trump plans a campaign rally on Saturday, reported a surge in new coronavirus infections.

The daily count of infections also hit a new benchmark in California and Texas, while Florida and Arizona also recorded the second-highest daily increases.

China’s capital canceled scores of flights, shut schools and blocked off some neighborhoods as it ramped up efforts to contain a coronavirus outbreak that has fanned fears of wider contagion.

“It is a big shock to markets that China, which appears to have successfully quashed the disease, is seeing a second wave. And in the U.S. we see record cases in many states,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

“All this suggests that the more you re-start the economy, the more infections you have. People have thought the economy will quickly recover in July-September after dismal April-June. But that is now becoming uncertain.”

Investors rushed to the safety of bonds, with the 10-year U.S. Treasuries yield falling 3 basis points to 0.704 percent.

In the currency market, the safe-haven yen rose about 0.3 percent to 106.72 per dollar while the U.S. dollar also firmed against risk-sensitive currencies.

The euro dipped 0.1 percent to $1.1235 while the Australian dollar lost 0.4 percent to $0.6852, also hit by worse than expected employment data.

Australia’s unemployment rate jumped to the highest in about two decades in May as nearly a quarter of a million people lost their jobs due to the coronavirus pandemic-driven shutdowns.

Oil prices also dropped with U.S. crude futures falling 1.9 percent to $37.49 per barrel, while international benchmark Brent lost 1.4 percent to $40.14 a barrel.

Related News