COVID-19 Continues To Sink Global Markets as Asian Indices Decline

Jun 29, 2020

On Sunday, the US reported over 38,000 new COVID-19 cases, plus over 250 deaths. There has been a staggering rise in reported cases all over the country, particularly in the state of Florida, although on Sunday, New York topped that number.

US officials are encouraging the public to get tested for the virus and to wear masks when out in public since there has been a notable increase in young people getting hospitalized as well as a large portion of this age group positive but asymptomatic.

COVID-19 cases have increased at an overwhelming rate in the USA, India and Australia.

Experts believe that some countries are facing a second wave of the virus, with India recording almost 20,000 cases on Monday 29th June, and 16,475 deaths since the beginning of the pandemic. Japan had the highest single-day jump since late May when the country canceled it’s emergency quarantine and attempted to restart its economy. Australia has also seen an increase in cases in the state of Australia which local Chief Health Officer, Brett Sutton, thinks is a “concerning number”. As we reported earlier last week, markets had already taken a beating from the effects of COVID-19.

 

 

Asian markets faced turmoil on Monday morning. China’s Shanghai Composite (SHCOMP) dropped 0.8%, while Japan’s Nikkei 225 (N225) declined 2%. South Korea’s Kospi (KOSPI) declined 1.6%. This has reflected the slump of US stocks futures which is why trading was halted on Friday. The Dow Jones Industrial Average faced a sharp decline and shed over 700 points.

US crude oil shares dropped to $37.74 per barrel, which is a 2% drop. Brent lost 1.7% and traded at $40.23 per barrel.

On Monday, chief market strategist for the Asian market at JP Morgan Asset Management, Tai Hui, said: “The rebound of the infection rate, especially in the US, shows that the road to full recovery is going to be long and that it will require medical solutions, such as a vaccine,”

Tourism is subject to restart in Europe in mid-summer.

In Europe, infection has seemed to decline, allowing European countries to reopen for the summer season, inviting tourists to visit them. European officials are discussing which countries are to be considered safe for accepting visitors from in July. The EU commission will create a list of recommendations on how countries can safely resume tourist activities, however, it will depend on every individual state to decide whether they will open their borders or not.