Asian Stock Market: Nikkei 225 refreshes monthly low as virus woes weigh on sentiment


  • Shares in Asia-Pacific stay offered as covid concerns haunt investors.
  • India leads the infection tally, unfortunately, Japan eyes third emergency.
  • Upbeat Aussie Retail Sales, vaccine hopes fail to restore market confidence.
  • Off in New Delhi, light calendar test the bears.

Asian equity traders remain depressed on early Wednesday as the region becomes the epicenter of the coronavirus (COVID-19) infections. Also weighing the sentiment could be the downbeat performance of Wall Street and strong Treasury yields.

Read: Coronavirus Update: India leads run-up in global infections, Japan to recall emergencies in Tokyo, Osaka and Hyogo

MSCI’s index of Asia-Pacific shares outside Japan drops 0.97% intraday whereas Japan’s Nikkei 225 prints 2.00% loss on a day by the press time. Australia’s ASX 200 and New Zealand’s NZX 50 register 0.90% and 1.35% intraday losses while Chinese shares buck the trend with mild intraday gains.

Markets in India are off due to Ram Navmi but those from South Korea, Indonesia and the Philippines don’t hesitate to drop amid the COVID-19 fears.

Australia registered strong Retail Sales and Westpac Leading Index for March whereas New Zealand’s Consumer Price Index (CPI) for Q1 2021 was also among the positive from the Pacific leaders. Furthermore, the RBNZ’s preferred measure of inflation also improved in March but the fears of economic slowdown and activity restrictions dominate above all.

Also on the market positive side were chatters over Israel’s import of Moderna booster and optimism concerning the Johnson & Johnson’s vaccine.

Against the general moves, Chinese shares seem to cheer hopes of faster economic growth at home, backed by President Xi Jinping’s upbeat comments, as well the People’s Bank of China’s (PBOC) sustained support for easy money policy.

Elsewhere, Wall Street benchmarks dropped for the second consecutive day and the S&P 500 Futures also print mild losses so far during Thursday. Furthermore, the US dollar index (DXY) keeps the previous day’s bounce off seven-week lows while strangely tracking the US Treasury yields’ recovery moves.

Read: S&P 500 Futures track Wall Street losses amid virus resurgence

Looking forward, a light calendar in Asia and dominance of the COVID-19 headlines will keep Asia-Pacific traders searching for hopes of overcoming the pandemic.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

GME stock positioned for another short squeeze

Get the full analysis and chart in our Insights. Upgrade to Premium today    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD loses 1.21 as the dollar extends its gains

EUR/USD has dipped below 1.21, some 70 pips down on the day as the dollar recovers alongside Treasury yields. US Consumer Sentiment beat estimates with 86.4 points. 

EUR/USD News

GBP/USD retreats amid UK GDP miss, reopening concerns

GBP/USD is hovering around 1.4150, down on the day. UK GDP missed with 2.3% in April and a four-week delay to Britain's reopening is speculated. The greenback is gaining some ground.

GBP/USD News

XAU/USD drops back below $1900, as US dollar rebounds ahead of data

Gold price has retraced below the $1900 mark once again, having tested Tuesday’s high near $1903. The latest leg down in gold price comes on the back of a tepid bounce staged by the US dollar, as the Treasury yields trim losses across the curve.

Gold News

Ethereum price prepares for a bullish weekend, targeting $3,000

Ethereum price seems prime to revisit $3,000. Although ETH faces resistance at $2,300, the upswing seems imminent. A downswing below $2,000 could invalidate the bullish thesis. 

Read more

Hot Inflation is warming the seat for the June FOMC

Americans are seeing the fastest price increases since their seventh-graders were born as inflation builds into the US economy from the disruptions of the pandemic lockdowns. Core CPI at 3.8% is the steepest gain in 29 years.

Read more

Forex MAJORS

Cryptocurrencies

Signatures