Asian and Pacific Rim sentiment was growing increasing sour as the region’s financial markets open the day under pressure and in the red. Asian traders are worried about the global rise in Covid-19 cases and the mounting death toll.
In Japan, the Nikkei 225 index was down over 1.37 percent by mid-morning (Hong Kong time). In Tokyo, the broader Topix index was down 1.25 percent. In South Korea, shares on the Kospi composite index were down 0.97 percent.
Elsewhere in the Asian and Pacific Rim, the Australian S&P ASX 200 saw shares falling over 1.30 percent by the lunchtime.
In Hong Kong, shares on the Hang Seng index were down 0.8 percent and on the mainland, in China, the headline indices were lower this morning. The Shanghai composite shed 0.56 percent and the smaller Shenzhen composite lost 0.53 percent.
Asian Traders Digest Weak Economic Data out of Japan
Looking at economic data, out of the world’s third largest economy and second largest in the region, Japan, monthly retail sales contracted worse than expected.
According to Japan’s Economic Trade and Industry Ministry, retail sales, for the month of May, fell 12.3 annually. The markets had expected a contraction of 11.6 percent.
Market Participants Worry about Covid-19 News
Traders and other market participants are monitoring the global coronavirus pandemic. There has been a spike in new cases which could slow down the reopening of the global economy. To date, half a million have died of the Covid-19 pandemic around the world.
The number of infections has gone above ten million, globally. Cases in the United States have surged to over 45,000 a day. This is according to data from John Hopkins University. States like Texas and Florida are re-enacting lockdown measures and closing businesses like pubs and restaurants as new cases in those states are spiking at an alarming rate.