Asian stocks struggle to find traction while Dow futures jump 500 points
Markets in Asia Pacific mostly stumbled Tuesday, while US stock futures jumped after novel coronavirus fears and an oil price war sparked a worldwide panic.
Australia's benchmark S&P/ASX 200 was the only major index trading firmly in the green — last up 1.7%, recovering from earlier losses that briefly sent the index into bear market territory. It's now trading nearly 19% below its most recent high, just under the 20% that defines a bear market.
South Korea's Kospi (KOSPI) fell 0.3%, while Hong Kong's Hang Seng Index (HSI) swung between gains and losses. China's Shanghai Composite (SHCOMP) dropped 1%.
Japan's Nikkei 225 (N225) was the region's worst performer, last trading down 1.5%. The government there is expected to soon announce more emergency measures to contain the spread of the virus. Japanese companies are also feeling the pain from the toll the virus took on China last month: Nissan's vehicle sales in China dropped 80% in February compared to a year earlier.
US stock futures, meanwhile, are recovering after Monday's historic declines. After initially falling after hours, Dow (DJI) futures shot up and were last trading up 500 points, or 2.2%, after President Donald Trump said he would press lawmakers to enact a payroll tax cut and ensure assistance is available to hourly workers amid a roiling coronavirus pandemic that's caused deep economic concerns and stock market shock. The Dow had ended the day with its biggest point drop in history, closing Monday down 2,014 points, or 7.8% — its worst day since the 2008 financial crisis.
Nasdaq (BANK) and S&P 500 (DVS) futures were last up more than 2% each, also recouping earlier losses.
Oil crashes by most since 1991 as Saudi Arabia launches price war
All three indexes are now nearly 20% below their most recent highs. If stocks fall further when the market opens on Tuesday, they will have slid from record highs to a bear market in a matter of weeks.
The coronavirus outbreak is hammering markets, and broader economies, in the United States and around the world. The number of cases globally has now topped 100,000, with at least 616 cases and 22 deaths in the United States as of Monday afternoon.
Italy's Prime Minister announced that as of Tuesday morning, the entire country will be on lockdown as cases of the virus rise, extending strict travel restrictions and bans on large gatherings.
At the same time, oil prices suffered their worst day since 1991 after Saudi Arabia shocked the market by launching a price war against onetime ally Russia. US oil prices dropped as much as 34%, ending Monday at a four-year low of $27.34 a barrel.
US oil futures were last up about 5.2% to $32.76 a barrel, while the global benchmark Brent crude rose 6.2% to $36.48 a barrel.
News Courtesy: www.cnn.com
