TOKYO- Asian shares and US stock futures fell on Wednesday as concern about a resurgence of coronavirus cases in some countries cast doubt on the strength of global growth and demand for crude oil.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6 percent. Australian stocks dropped 1.25 percent and shares in China were down 0.46 percent.
Stocks in Tokyo slumped by 1.79 percent due the growing likelihood that Tokyo, Osaka and surrounding areas will be put on lockdown due to a new wave of coronavirus infections.
S&P 500 e-mini stock futures also fell 0.18 percent.
Crude futures extended declines from a one-month high in Asian trading on speculation that coronavirus restrictions in India, the world’s third-largest oil importer, will hurt energy demand.
Recent optimism about rising vaccination rates in the United States, Britain, and Europe is shifting to concern that record coronavirus infections in India and the reinforcement of travel restrictions will act as a brake on the global economy.
“Renewed concerns about the global economic recovery weighed on commodity prices and commodity currencies. Many countries around the world, such as India and Brazil, set new records for infections and deaths,” analysts at Commonwealth Bank of Australia said in a research note.
“As long as the virus persists, there is a risk virus mutants develop and spread to other countries.”
Declines in Asian shares followed a downbeat day on Wall Street. The Dow Jones Industrial Average fell 0.75 percent, the S&P 500 lost 0.68 percent, and the Nasdaq Composite fell 0.92 percent on Tuesday as investors sold airlines and travel-related shares due to fear of a delayed recovery in global tourism. – Reuters
