Stocks fall most sharply in Tokyo and Sydney
Asian markets fell in early trading Wednesday, as investors took remained cautious as the world’s economies slowly start reopening from coronavirus-related shutdowns.
Japan’s Nikkei NIK, -0.63% dropped 0.8%, while Hong Kong’s Hang Seng Index HSI, -1.03% rose slightly. The Shanghai Composite SHCOMP, -0.48% declined 0.2% while the smaller-cap Shenzhen Composite 399106, -0.21% was about flat. South Korea’s Kospi 180721, -0.99% gained 0.1%, while benchmark indexes fell in Singapore STI, -1.37% and Indonesia JAKIDX, 0.03% but rose in Taiwan Y9999, -0.70% . Australia’s S&P/ASX 200 XJO, -0.89% slid 1%.
Stocks on Wall Street sank sharply Tuesday, as the nation’s top public health officials warned of the near-certainty of deadly new coronavirus outbreaks if U.S. businesses open up before it’s safe, while Fed officials warned that the economy was in dire straits if businesses stay shut.
The Dow Jones Industrial Average DJIA, -2.17% fell more than 450 points for its worst one-day percentage loss since May 1. The S&P 500 SPX, -1.74% and Nasdaq COMP, -1.54% both lost more than 2%, with the Nasdaq snapping a six-session winning streak.
“Asian stocks are following their U.S. peers lower after warnings against a premature re-opening of the economy and downbeat and unsettling for risk comments from regional Federal Reserve chiefs,” wrote Stephen Innes, chief global markets strategist at AxiCorp, in a note.