US virus concerns Asian markets drop after Wall Street sale

Japan Nikkei 225 (N225) South Korea fell 1.8% in early trade Kospi (KOSPI)Lost 2.7%. Hong Kong Suspend (HSI) and China’s Shanghai Composite (SHCOMP) Treated at 1.2% and 0.6%, respectively.

Oil futures also fell. US oil fell 2% in Asian trading hours on Friday, down 8% on Thursday. West Texas Intermediate was traded at $ 35.61 per barrel. Brent, a global benchmark, fell 1.1% to $ 38.10 a barrel, down 7.6% on Thursday.

The losses, US stocks fell on Thursday and recorded their worst days since March 16.

Pandemic caused unemployment to rise in the United States as part of the economy closed. A second wave of infections can force many businesses to shut down again after reopening.

“The fear of increasing Covid-19 infections is the most important driving force for this sale, in our opinion,” said Tai Hui, chairman of JP Morgan Asset Management’s Asian market strategy.

Meanwhile, oil markets are responding to fears about an increase in infections in the world’s largest oil-consuming economy, and according to Stephen Innes, AxiCorp’s head of global market strategy.

He added that the last negative thought was “aggravated” by the comments of Federal Reserve President Jerome Powell, who warned on Wednesday that the country’s economic future is extremely ambiguous.

US stock futures recovered somewhat in post-trade transactions. Dow (Indi) futures rose 266 points or 1.1%. S&P 500 (SPX) futures increased by 0.9% Nasdaq (COMP) futures increased 0.8%.

Anneken Tappe and Tami Luhby contributed to this report.