Asian Markets Flat as Covid-19 Cases Surge Higher

The Asian and Pacific Rim financial and equity bourses were mixed during the early morning trade session.

Asian and regional traders are watching a growing number of Covid-19 (coronavirus) pandemic cases grow in the United States. As coronavirus cases spike, this could lead to renewed lockdowns and social distancing restrictions.

In Japan, the headline Nikkei 225 was up 0.1 percent during the late morning session. The broader Topix index, in Tokyo, was trading around the flat line.

Across the Korean Strait in South Korea, the benchmark Kospi composite index was also trading near the flat line. Elsewhere in the Asian and Pacific Rim, shares on the benchmark Australian S&P ASX 200 was trading just above the flat line.

In Hong Kong, the Hang Seng index was down 0.3 percent. On the mainland, in China, the headline equity bourses inched higher. The Shanghai composite added 0.13 percent by late morning and the smaller Shenzhen composite was up 0.41 percent.

China’s central bank, the Peoples’ Bank of China (PBOC) kept their benchmark overnight lending rate unchanged. The one year lone prime rate was left at 3.85 percent and the five year loan prime rate was kept steady at 4.65 percent.

Asian Traders watch a Rise in Covid-19 Cases Stateside

Traders and other market participants are closely watching a spike in new Covid-19 pandemic cases in the United States as some states start to prepare for the second wave of infections.

According to Johns Hopkins University, the United States, on Friday and Saturday reported 30,000 new cases. This is the highest rise in cases since the first of May.

According to Beijing, the capitol of China, the city has the capacity to screen one million people a day for the coronavirus. This comes after a recent cluster of new infections hit the city last week.