A quick overview of Asian indexes
The shares in the Asian market did not perform well this week and fell drastically on Tuesday. Japan’s Nikki 225 index was – 0.86%, and it decreased to nearly 0.8% compared to the previous opening. Similarly, Hong Kong’s Hang Sang index fell to -1.19%, which is approximately 1.7% lower than the previous. Moreover, the other indexes which performed their worst on Tuesday are Shanghai Composite -0.80%, Shenzhen composite SHCOMP-.086%, Kospi of South Korea -0.11%, Singapore -0.18%, and Taiwan -0.02 %. Among this, the only index performed at a slightly higher rate was the Indonesian JAKIDX, which was 0.15%.
The condition of the US market
The United Nation’s stock market performed pretty good on Tuesday. The stocks opened a little prominent than Monday as the investors looked for the slew of earning ahead of them. This slaughter of earnings resulted from the big banks in the United States. S&P 500 and Nasdaq seem to erase their earlier gain to end on the low note during the regular session. However, each of them advanced strongly as compared to the previous day. This rise seems to be done in part by the anticipation of the coronavirus vaccine from BioNTech and Pfizer. Moreover, the Dow ended on a high note to a 4% hike in shares of Pfizer buoying the index. For the broader, the rollback of the reopening plans has put a restriction upon the risk rally.
The impact of increased cases of coronavirus and US-China Tension on market
The Asian market has been greatly impacted by the rising cases of coronavirus in the United States of America and also from the increasing tensions between the US and China. The shares slipped in the Asian market exponentially as more jobs were lost due to the US-China tensions and coronavirus pandemic. The White House decided to reject all the maritime claims made by China in the South China sea; this added more to the investor’s jitters. Both of them are the world’s largest economy, but now there is a dispute over everything from pandemic to human rights. One of the worst indicators of this was the recession in the GDP of Singapore in the second quarter, even though they were expecting a rise. Furthermore, Wall Street seems to be experiencing deadly reminders of the coronavirus pandemic as the plan for reopening causes a spike in the coronavirus cases across the country.
To stop the further increase in the number of cases, the local government has decided to close all the bars and dining areas along with some other restrictions. California remains one of the most affected states in America, where the number of cases is rising and thereby threatening the economy of the country.
The potential investors in the Asian countries appear to expect the banks to kick off earning sessions at an interval of three months. For this, they had to set aside their billions of dollars away from the market to cover the bad loans which are become worse with the passage of days, The only hope that now remains in the minds of the Asian, as well as the American investors, is that over the time stocks would improve and also the economy.
source : forexnews صخقمي