Asia report: Markets close weaker as coronavirus cases climb further
By Josh White
Date: Friday 10 Jul 2020
(Sharecast News) - Markets in Asia fell across the board on Friday, as the ballooning Covid-19 pandemic continued to cause consternation among investors.
In Japan, the Nikkei 225 was down 1.06% at 22,290.81, as the yen strengthened 0.41% against the dollar to last trade at JPY 106.76.
Automation specialist Fanuc rose 0.48%, while among the benchmark's other major components, fashion firm Fast Retailing slid 3.34%, and technology conglomerate SoftBank Group slipped 0.38%.
The broader Topix index lost 1.42% by the end of trading in Tokyo, to close at 1,535.20.
On the mainland, the Shanghai Composite was 1.95% weaker at 3,383.32, and the smaller, technology-heavy Shenzhen Composite was off 0.31% at 2,251.00.
South Korea's Kospi lost 0.81% to 2,150.25, while the Hang Seng Index in Hong Kong was 1.84% lower at 25,727.41.
A recent spike in coronavirus cases in the special administrative region saw officials order the closure of all schools from Monday.
Both of the blue-chip technology stocks were weaker in Seoul, with Samsung Electronics off 0.19%, and chipmaker SK Hynix 0.24% lower.
The continuing spread of Covid-19 was at the top of the agenda once again, as California and Florida became the latest US states to hit record seven-day averages for daily new cases.
According to the World Health Organization, the pandemic was "getting worse" in most of the world, even though it said it could be brought under control.
At last count, more than 12 million people are confirmed to have been infected worldwide.
"There is a growing feeling that things are going backwards in terms of the health emergency," said David Madden, market analyst at CMC Markets UK.
"Yesterday, it was reported that Tokyo posted a record number of new cases, while Hong Kong will retighten restrictions on account of the number of fresh cases."
Madden added that in the US, Alabama saw a record number of cases, while Florida posted a record number of hospitalisations and fatalities.
"Earlier in the week, the WHO said it wouldn't be surprised if the death rate increases as the infection rate has risen recently, but the fatality rate is still lagging behind.
"Traders will be paying close attention to the number of deaths, as that could be the tipping point for politicians to reverse the reopening of their economies."
Oil prices were lower as the region entered the weekend, with Brent crude last down 1.46% at $41.73 per barrel, and West Texas Intermediate falling 1.77% to $38.92.
In Australia, the S&P/ASX 200 was off 0.61% to settle at 5,919.20, as the energy sector slid 1.98%, and the hefty financials subindex lost 0.72%.
The big four banks were mixed, however, with Commonwealth Bank of Australia managing gains of 0.3%, while Australia and New Zealand Banking Group fell 1.03%.
National Australia Bank lost 1.11%, and Westpac Banking Corporation was 1.4% weaker by end-of-play.
Across the Tasman Sea, New Zealand's S&P/NZX 50 slipped 0.4% to 11,394.86, as the sell-off in the energy sector there continued, with Contact Energy losing 3.1%, Genesis off 0.7%, and Meridian dropping 3.8%.
The declines came after Rio Tinto's announcement on Thursday that it would close its New Zealand Aluminium Smelters operation - the country's single-largest electricity consumer - next year.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.3% at AUD 1.4403, and the Kiwi retreating 0.16% to NZD 1.5244.
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