SINGAPORE (Reuters)-Asian stock markets fell on Thursday, but there was no panic selling in Europe and the United States, while US futures rose as investors feared that the new lock-in measures might make the recovery of COVID-19 faltering. This is controlled. Pandemic.
The MSCI’s broadest index in the Asia-Pacific region outside of Japan fell 0.6%, of which Australia had the largest decline with a decline of 1
Japan’s Nikkei Index fell only 0.3%, Chinese blue chip stocks rose 0.5%, and the RMB exchange rate against Asian currencies against the US dollar rebounded moderately.
This is a far cry from the biggest declines in Wall Street and Europe in the months of Wednesday, highlighting the rise of Asia from a pandemic while the rest of the world is still mired in quagmire.
Traders raised S&P 500 futures by 1% out of this sentiment, hoping that large fluctuations could mean a rapid rebound. European futures rose 0.5% and the FTSE index rose 0.3%.
Rob Carnell, chief Asian economist at ABN AMRO ING, said: “In the second or third wave, Asia did not really play a role because its COVID has been basically controlled.”
“So, the domestic economy looks reasonable.”
For example, Taiwan, which has the best-performing currency in Asia, has no local transmission on Thursday for the 200th consecutive day, while France and Germany are preparing for blockades and the virus is spreading in the Midwest.
Oil also held steady on Thursday, with Brent crude oil futures rising 0.2% to $39.20 a barrel and falling 5% on Wednesday. [O/R][AUD/]
Nevertheless, due to the worsening of the epidemic and the approach of the US election, commodities, which are usually regarded as indicators of global energy demand and growth, have so far fallen by 6.2%, and world stocks have fallen by 4.7%.
Rodrigo Catril, a foreign exchange strategist at National Australia Bank, said in a report: “The market has been traveling until yesterday, hoping that improving health care services in response to the pandemic can prevent serious lockdowns.”
“At least in Europe, this dynamic has changed… The question now is whether the US states will follow suit.”
Economic data and the European Central Bank meeting are the main focus later on Thursday, and people’s uncertainty about the US election on Tuesday is also increasing, which also puts investors in a difficult position.
The Bank of Japan did not make any changes to its monetary policy settings as expected, although it lowered its growth forecast to reflect weak summer service spending.
Investors expect that the European Central Bank will also postpone the new measures, but hinted that it will take action in December, which may put pressure on the euro.
The euro hit a 10-day low of the U.S. dollar and a 100-day low of the yen on Wednesday, and then rebounded slightly. The last purchase price was $1.1752.
German unemployment and inflation data, European confidence surveys and advance figures for US GDP will also be closely watched-US data may show record growth, but still keep the economy behind 2020.
Michael McCarthy, a strategist at CMC Markets in Sydney, said: “Given the current weakness, any disappointment in these numbers will have a magnifying effect on the market.”
Investors are also increasingly worried about the controversial outcome of the US election, which may trigger a wave of risky asset selling.
Wall Street’s “fear indicator” Cboe Volatility Index surged to its highest level since June on Wednesday, and the implied currency volatility suggests that expectations will be crazy.
However, the US bond market is sober, and investors look back at voting day and believe that no matter who wins, the government will borrow heavily on coronavirus relief expenditures.
The benchmark U.S. 10-year Treasury bond yield rose overnight, rising by about half a basis point to 0.7877% on Thursday.
Tom Westbrook reports from Singapore. Additional reporting by Pete Schroeder in Washington; edited by Lincoln Feast.