Asian markets mostly drop on worries over US stimulus

Asian markets mostly drop on worries over US stimulus

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Hong Kong: Worrying that US congressmen may not immediately agree to the new stimulus package, most Asian stock markets fell on Wednesday, and Wellington was hit because New Zealand recorded its first local virus transmission in more than 100 days.

Although concerns about the tensions between China and the United States and the re-imposition of blockades in recent weeks have plagued investor confidence, the optimistic expectations have been supported by the United States, as people are expected to launch another large-scale rescue package to cooperate. Ultra-loose monetary policy.

Even if progress on Capitol Hill has been slow for more than a week, it has not changed the view that the two sides will eventually find common ground to provide much-needed funding for the world’s top economies, especially as the election approaches.

But Senate Majority Leader Mitch McConnell (Mitch McConnell) told traders that there was no progress in the transaction, which shocked traders.

“And so another day has gone by with an impasse and they need to get together,” McConnell said, sparking a sell-off on Wall Street, which had been well in positive territory until then.

“The hope was that US politicians will look to restart negotiations on a new fiscal stimulus this week. Now with no talks scheduled, the deadlock between Republicans and Democrats is at risk of dragging on for weeks,” National Australia Bank’s Rodrigo Catril said.

Hong Kong fell 0.6%, Shanghai fell more than 1%, Sydney fell 0.5%, and Seoul fell 0.3%.

Singapore, Jakarta and Taipei all fell. However, due to the weakening of the yen, Tokyo’s lunch hour rose slightly.

-Frustrated optimism-

“When you walk back the market’s expectations of an imminent fiscal deal, it is like poking the balloon with a straight pin as all semblance of near-term optimism gets immediately deflated,” said AxiCorp’s Stephen Innes.

“Let us face it, the only relevant information that might aid investors’ comprehension of the path of the real economy has come from fiscal stimulus chatter.

“Take that out of this week’s equation, and you are left hoping on a wing and a prayer for a vaccine.”

Wellington fell more than 1% after four people tested positive before announcing a three-day lock-up period in Auckland, New Zealand’s largest city. Auckland’s largest population is 1.5 million, and the 102-day operation ended, which aroused hope that the disease will be controlled.

The price of gold fell by more than 5%, extending the profit-taking sell-off the day before, and the appreciation of the U.S. dollar continued until July, which helped gold reach multiple records.

Analysts said that worries about the future of the Sino-US trade agreement have eased, and China’s health data has also brought some encouragement to investors, giving them the confidence to get rid of safe havens such as gold and the yen.

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