Asian stocks sank on Tuesday after a spectacular day on Wall Street as investors wait to see if Congress can crack a logjam to give more aid to people, businesses and local governments affected by the coronovirus epidemic.
Prime Minister Yoshihide Suga announced the postponement of a travel incentive program after Japan’s benchmark Nikkei 225 index fell, which has helped businesses, but is also believed to have helped revive the coronovirus outbreak.
The program was suspended from 28-January. 11, basically the entire New Year period, when most families go on holiday or back to their hometown. The Go to Travel program and another dub to Go offer huge discounts mainly on hotel rooms and meals and help this cushion from the loss of almost all inbound foreign tours due to epidemiological controls and concerns.
In addition, the Chinese government on Tuesday made an announcement of monthly figures showing retail sales, industrial production and investment in factory equipment, and other fixed assets, as expected in November. However, the Shanghai Composite Index declined 0.4% to 3,356.11.
Other regional benchmarks also track Wall Street’s Retreat. Hong Kong’s Hang Seng declined 0.5% to 26,252.50 and Nikkei 225 in Tokyo rose 0.3% to 26,648.83. South Korea’s Kospi was down 0.5% to 2,750.85 while the S & P / ASX 200 was down 0.4% at 6,635.00.
Expanding its pullback in recent months, the S&P 500 fell 0.4% to 3,647.49 on Monday after gaining 0.9% in the session. This was its fourth straight fall since September. Losses in the financial, industrial, and health care sectors outstripped the gains made by companies relying on technology stocks and consumer spending.
Treasury yields were mostly high, a sign of optimism in the economy. However, on Tuesday, the yield on the 10-year Treasury fell from 0.90% to 0.89% late Monday night.
The Dow Jones Industrial Average fell 0.6% to 29,861.55. Nasdaq rose 0.5% to 12,440.04. Smaller companies fared better than their larger rivals, as the Russell 2000 index gained 2.16 points, or 0.1%, to 1,91366 points.
Americans began receiving the country’s first vaccination against COVID-19 on Monday, a process that is expected to take months.
Health care workers and nursing home residents are queuing up for the first shots, and hope that a wider rollout next year will help curb the epidemic and bring the economy back to normal after this year’s devastation.
Rising coronavirus counts are slowing the pace of the economy, which was seen in a worse report than unemployment last week. The increasing deaths are prompting governments to reinstate separate restrictions on companies. They are turning potential customers away from businesses.
Attempts to provide another round of financial support for the US economy have stalled with bitter partisanship. Washington’s top negotiators continued to arrive Monday for a long-delayed settlement on COVID-19 relief, but rank-and-file Democrats had to appear swiftly to resign, at the moment, for states and locals with fiscal relief A scale-back demand for governments whose budget has been balanced by the epidemic.
“Again, it looks like we’re stuck in a negative feedback loop,” Axi’s Stephen Ines said in a comment. Unless policymakers overreact to market expectations, especially at this time of year when our risk-taking profits give way to profit, it seems that economic sanctions related to the virus will not stop weighing in the form of the market ( Continued) hope and reality. “
Even without another round of excitement, investors are facing a strong environment over the next year including low inflation and ultra-low interest rates.
Meanwhile, Hops has risen to progress on a possible deal on the terms of the United Kingdom’s exit from the European Union.
EU chief negotiator Michel Barnier Monday said he believes a trade deal is possible after nine months of negotiations, now limiting the remaining disputes to just two. Both sides are still on the verge of missing a deal. They are committed to a final push before 1 January, when a transitional period after the UK mass. Departure from 31 blocks is to end.
In other trading, benchmark US crude oil sheds 23 cents to $ 46.76 a barrel in electronic trading on the New York Mercantile Exchange. It rose 42 cents to $ 46.99 a barrel on Monday.
The international standard Brent crude raised the price to 16 cents to $ 50.13 per barrel.
The US dollar rose to 104.07 yen from 104.07 yen late on Monday night. The euro strengthened from $ 1.2145 to $ 1.2162.
AP Business Writers Stan Choe, Alex Weiga and Damian Jay Troes contributed.