Asian markets weighed by virus spikes and stimulus gridlock

Asian markets weighed by virus spikes and stimulus gridlock


Hong Kong: Most Asian markets fell on Monday after Wall Street’s disappointing performance again. Investors are increasingly worried about rising infection rates in Europe and the US, and the lack of new stimulus measures in Washington.

After months of substantial growth in various parts of the world under government stimulus measures and the generosity of the central bank, stocks began to fluctuate, and analysts warned traders that they were making profits because they thought the gains might have been exaggerated.

A major concern is the surge in new virus cases in key economies, leading to containment measures.

The British government pointed out that the hospitalization rate doubles every eight days and indicated that new restrictions may be implemented across England. Some cities have already taken some measures.

Health Minister Matt Hancock said that China is at a “critical point.”

France has seen the death toll pick up, and some worry that Madrid will be overwhelmed. After falling for several weeks, the rate of new infections in the United States has risen again.

Stephen Innes of AxiCorp said: “Investors are still confused as to which way to go… The UK government has sounded the alarm because of the lock-in concerns because the Covid-19 curve is moving in the wrong direction.

“After the total blockade and the initial economic rebound, both the UK and Europe’s economic trajectories may enter a depressing second phase, characterized by continued social distancing, rising unemployment and increased damage to the supply side.”

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