Covid-19 drowned Asian stocks, boosting US dollar prices

The red color spread on Asian stock markets at the end of October 16 session because investors were afraid of the unpredictable Covid-19 translation in Europe.

Mainland Chinese stocks were mixed in October 16 session. Photo: AFP

Mainland Chinese stock markets at the end of the session still regained a little green when the Shanghai Composite Index edged up 0.13% to 3,336.36 points, but Shenzhen Component fell 0.68% to 13,532.73 points. Green stayed with Hong Kong stocks with the Hang Seng Index up 1.04% at the end of the session.

The red color covered the rest of Asia’s major stock markets. In Japan, the Nikkei 225 index closed 0.41% lower to 23,410.63, while Topix slipped 0.86% to 1,617.69. South Korea’s Kospi Index lost 0.83% today to 2,341.53.

Australian stocks welcome “rookie” telecommunications industry in red. The S & P / ASX 200 at the close only reached 6,176.80 points, down 0.54%.

Launched to the Australian market today October 16, the shares of the telecommunications company Aussie Broadband increased more than twice to A $ 2.22 / share, compared with the issue price of 1 Australian dollar. At the end of the session, shares of Aussie Broadband reached Aussie 1.91.

Also in Australia, shares of the Iron Ore Mining Group, the world’s largest, Rio Tinto close the door dropped 0.85%. Earlier, the group reported a 5% drop in inventories in the third quarter of 2020, warning that the speed of recovery could be even slower in most economies.

“Recent data shows that the rate of recovery is slowing in most economies, with pent-up demand for goods long dissipated in the face of the rise of new anti-epidemic blockades,” said Rio Tinto. stated in the business operation report for the third quarter of 2020.

In the technology segment, chip maker TSMC (Taiwan) on October 15 said its third / 2020 net profit increased to 35.9% thanks to the soaring demand for high-end chip products.

US stocks last night enjoyed the third “fiery red” session in a row when hopes of a new stimulus package became fragile, while Covid-19 infection in Europe showed signs of increasing.

The Dow Jones industrial average closed down 19.8 points, or 0.07%, to 28,494.20 points, but earlier in the session, the Dow Jones “evaporated” more than 300 points. The S&P 500 fell 0.2 percent to 3,483.34 while the Nasdaq Composite lost 0.5 percent to 11,713.87.

“Investors are concerned that the market will go down as the number of Covid-19 infections increases. Europe has recorded the highest weekly number of new Covid-19 cases since the beginning of the season. More than half of European countries are in the process. On red alert, which means more restrictions and blockades are in place, “commented Adelaide Timbrell, economist at ANZ.

Confused with stocks, investors flocked to safely take refuge in the US dollar. The US dollar index against other major currencies soared to 93,764, from 93.4 established yesterday. “The US dollar strengthens because investors want to avoid risks and find a safe haven,” said Rodrigo Catril, senior foreign exchange expert of National Australia Bank (NAB).

The Japanese Yen inched slightly and converted 105.27 JPY / USD, while the Australian dollar weakened to 1 AUD for 0.7090 USD, compared with 1 AUD / 0.71 USD in the past days.

Oil prices on the Asian market went down this afternoon. Futures prices for Brent crude fell 1% to $ 42.70 / barrel, while the US crude futures price fell 0.9% to $ 40.55 / barrel.

Design by NewsLax