By YURI KAGEYAMA
TOKYO (AP) – Asian stocks were mostly lower, skyrocketing Wednesday morning amid uncertainty over the coronavirus epidemic, which continues to claim more lives around the world.
The Japanese Nikkei 225 rose 0.1% to 18,974.06 during morning trade. Australia’s S & P / ASX 200 lost 0.3% to 5,234.60, while South Korea Kospi lost almost 0.4% to 1,816.84. The Hong Kong Hang Seng fell 0.6% to 24,121.07, while the Shanghai composite index fell 0.4% to 2,808.85.
The Wall Street rally suddenly disappeared in a market dominated by strong fluctuations responding to the ups and downs of the news of the pandemic.
“The recent risk rally has quickly waned despite recent efforts to boost monetary and fiscal authorities, as market players have accepted the continuing rise in deaths as the virus continues to spread,” said Prakash Sakpal and Nicholas Mapa, economists at ING, in a report.
In Asia, Japan’s state of emergency came into effect, concentrated in seven urban areas, including Tokyo, with strong government requests to keep people at home and close restaurants and shops for a month . However, there were few signs of behavior change during the morning rush hour.
The S&P 500 fell 0.2% to 2,659.41 after clearing a 3.5% surge earlier today. Market gains have waned as the price of US crude oil suddenly went from a gain to an abrupt loss of over 9%.
Even though economists say a punitive recession is inevitable, some investors have started to anticipate when a spike in new infections would provide some clarity about the length of the recession and its depth.
Investors could then, finally, consider the other side of the economic closure, after the authorities forced companies to stop in the hope of slowing the spread of the virus. In the meantime, governments around the world are planning to pump billions of dollars more into the economy.
Many professional investors say they are wary of the recent upsurge and expect more volatility. The S&P 500 has climbed almost 19% since reaching a low on March 23, although it is still down 21.5% from its record set in February.
“It is important to remember that we should not over-extrapolate temporary trends,” said Patrick Schaffer, global investment specialist at J.P. Morgan Private Bank.
These concerns were confirmed during trading on Tuesday, when the S&P 500 hovered up and down, up and down, and back throughout the day.
“We’re still at what you would call the recession relief from the previous trough,” said Sam Stovall, chief investment strategist at CFRA. He noted that this type of rally is common in deep bear markets, Wall Street speaks when stocks fall 20% or more from a peak.
“There is no guarantee that the worst will be behind us, but traders believe that at least there is short term money to be made,” said Stovall.
The Dow Jones Industrial Average slipped 0.1% to 22,653.86, dropping an earlier gain of 937 points. The Nasdaq composite lost 3% to 7,887.26.
“It’s very difficult to imagine baseball stadiums in June filled with people drinking beer and watching games,” said Schaffer of J.P. Morgan Private Bank. “People today do not anticipate that the economy will restart as a switch, but rather that it will be a gradual reopening of parts of the economy.”
Experts say more deaths are on the way due to COVID-19, which has already claimed at least 82,000 lives worldwide. The United States leads the world in confirmed cases with more than 398,000, according to a count from Johns Hopkins University.
More economic misery is also on the horizon. Economists await a report on Thursday to show that 5 million Americans claimed unemployment benefits last week as layoffs sweep the country. This would bring the total to almost 15 million in the past three weeks. Analysts also expect large companies to report their worst quarter of declining profits in more than a decade.
ENERGY: Oil prices have gone down because many people no longer go to work, go to meetings, or go to the store due to the economic downturn. US benchmark crude oil jumped from $ 1.48 to $ 25.11 a barrel. It fell $ 2.45, or 9.4%, to $ 23.63 a barrel on Tuesday. Brent crude, the international standard, gained 90 cents to $ 32.77.
The dollar fell to 108.75 yen from 108.80 yen on Tuesday. The euro slipped to $ 1.0872 from $ 1.0892.
Business writers AP Stan Choe and Alex Veiga contributed.