Begin typing your search...

Asian markets mixed after Wall St falls on virus pressure

Asian stock markets were mixed Friday after Wall Street sank following signs of damage to the US economy from the coronavirus is worsening while Congress is deadlocked over possible new aid.

Asian markets mixed after Wall St falls on virus pressure
X

Asian markets mixed after Wall St falls on virus pressure

  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • koo
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • koo
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • koo

Beijing: Asian stock markets were mixed Friday after Wall Street sank following signs of damage to the US economy from the coronavirus is worsening while Congress is deadlocked over possible new aid.

Shanghai and Tokyo retreated while Hong Kong and Seoul gained. Investors have been encouraged by progress in developing vaccines. But optimism has been dented by rising infection numbers in the United States and some other markets, which prompted renewed curbs on business. Overnight, Wall Street's benchmark S&P 500 index slipped 0.1 per cent after the government reported more people than expected applied for unemployment last week. The index hit an all-time high on Tuesday.

"While the stimulus deadlock is proving to be the ultimate rally capper, it was the gnarliest of Main Street concerns that hurt sentiment," said Stephen Innes of Axi in a report. The Shanghai Composite Index lost 0.6 per cent to 3,351.92 and the Nikkei 225 in Tokyo shed 0.5 per cent to 26,612.74. The Hang Seng in Hong Kong advanced 0.4 per cent to 26.524.01. The Kospi in Seoul advanced 0.7 per cent to 2,765.72 while Sydney's S&P-ASX 200 was 0.7 per cent higher at 6,637.80.

New Zealand and Singapore advanced while Jakarta declined. US stocks slipped after the government reported Thursday that 8,35,000 people applied for unemployment last month, the highest level since September. That meant the total number of people receiving jobless benefits rose for the first time in three months, to 5.8 million from 5.5 million. Weekly jobless claims pre-pandemic usually were about 225,000.

On Thursday, a proposed $908 billion aid deal all but collapsed after Senate Majority Leader Mitch McConnell said Republican senators won't support giving $160 billion to state and local governments. Republicans are pressing for a measure that would shield companies from potential coronavirus-related lawsuits. The package would extend unemployment benefits that are due to expire December 26.

Without it, more than 9 million people would lose benefits, which would undercut consumer spending, the main engine of the US economy. The S&P 500 slipped to 3,668.10, led by declines for industrial and communication stocks.

The Dow Jones Industrial Average dropped 0.2 per cent, to 29,999.26. The Nasdaq composite rose 0.5 per cent to 12,405.81. Also Thursday, the European Central Bank announced another 500 billion euros (USD 600 billion) in stimulus.

In energy markets, benchmark US crude lost 1 cent to USD 46.77 per barrel in electronic trading on the New York Mercantile Exchange.

Bizz Buzz
Next Story
Share it