Asian Markets Turn Lower as Sentiment Wanes

The Asian and Pacific Rim financial markets were back in the defensive on Wednesday. Risk-off sentiment was back in play. Regional Asian traders looked for safe haven asset classes.

Financial traders are watching the ongoing spread of the COVID-19 virus as the United States just reported a leap in cases.

In the European Union, every member state has reported cases and Italy is under tremendous pressure as their health system is under tremendous strain.

In South Korea, the Kospi composite index was down over one percent by lunchtime.

The Japanese Nikkei 225 was down over one percent, as well, and in Tokyo the broader Topix index was up a fraction of a percent.

Elsewhere in the Asian and Pacific Rim, the Australian ASX 200 was down over 1.9 percent on Wednesday.

In Hong Kong, the Hang Seng index was down 0.13 percent and in the mainland in China, the headline bourses were mostly unchanged.

The Shanghai composite and the Shanghai component were flat by lunchtime. The Shenzhen composite was up a faction of a percent.

Asian Traders Monitor Possible U.S. Fiscal Stimulus

Yesterday, U.S. President Donald Trump said that he will ask Congress for a payroll tax cut and other “very major” stimulus measures. As always, he is scarce on details.

On Tuesday, the U.S. Centers for Disease Control and Prevention (CDC) reported that there are 696 cases of COVID-19 in the United States. The previous count was 224 and there have been 25 deaths.

However John Hopkins just released that there are over one thousand coronavirus cases now in the United States.

Key U.S. Inflation Data and UK GDP Numbers on Tap

The United States is releasing their monthly headline and core consumer price index (CPI). Traders will also digest the federal budget balance as well as crude oil inventories.

The United Kingdom is scheduled to release their monthly gross domestic product (GDP) data and annual budget. The U.K. is also publishing their trade balance, monthly industrial production and manufacturing data.