Asian shares mostly fall over pandemic, US trade ‘worries’
Energy stocks slip after oil prices give up some of their gains
TOKYO, May 7, (AP): Asian shares were mixed Thursday as worries about the pandemic’s damage to the global economy swirled with glimmers of hope about some regions reopening gradually to business as usual.
Comments by President Donald Trump on trade with China and blaming Beijing for the coronavirus pandemic have dampened sentiment.
Japan’s benchmark Nikkei 225 gained 0.3% to 19,674.77, reopening after Golden Week holidays, and South Korea’s Kospi was little changed inching down less than 0.1% to 1,928.26. Australia’s S&P/ASX 200 lost 0.4% to 5,364.20. Hong Kong’s Hang Seng fell 0.6% to 23,994.80, while the Shanghai Composite fell nearly 0.1% to 2,876.13.
“Asian stocks are off to a sluggish start following gloomy COVID-19 figures, dismal U.S. private payroll data, Trump’s tough talk on China, and as Japan returns from Golden Week holidays. Both the US and global fatalities jumped to the highest levels since April 21st,” said Edward Moya, senior market analyst at OANDA.
Trump said he would soon assess progress in a preliminary trade agreement with China that took effect in January, extending a truce in a painful tariffs war between the world’s two biggest economies.
The possibility of revived friction over trade at a time when economies have been slammed by pandemic shutdowns and travel restrictions has rattled investors in Asia, where China is the main driver for regional growth.
On top of that, worries continue that potential lapses in social distancing might set off new infections in Japan, where many refrained from traveling and streets stayed empty during the past week’s holidays.
Reported cases have been tapering off in Japan, which has reported nearly 560 deaths so far. The U.S. has confirmed more than 73,000 deaths, according to Johns Hopkins University. Global confirmed cases are approaching 4 million people, more than a million of them in the U.S., though the true scale of the pandemic is believed to be much greater than official data suggests, given low testing rates and other factors.
Overnight, the S&P 500 dropped 0.7% to 2,848.42. Three out of four stocks in the index sank. But the market’s losses would have been much worse if not for continued gains for technology stocks.
The Dow Jones Industrial Average sank 0.9% to 23,664.64. The Nasdaq, which is full of tech stocks, rose 0.5%
to 8,854.39.
A report Wednesday morning showed private U.S. employers eliminated an astonishing 20.2 million jobs last month. That sets a dour stage for Friday’s more comprehensive monthly jobs report from the U.S. government.
Across the Atlantic, the European
Union said it’s bracing for a “recession of historic proportions” amid restrictions meant to slow the spread of the virus.
Energy stocks slipped after oil prices gave up some of their gains from earlier in the week. But oil was on the rebound Thursday, with benchmark
U.S. crude oil up 6 cents to $24.05 a barrel in electronic trading on the New York Mercantile Exchange. It fell 57 cents, or 2.3%, to $23.99 a barrel Wednesday.
Brent crude oil, the international standard, lost 3 cents to $29.69 a barrel.