Asian stock market went into the red zone on Wednesday, falling in almost all major areas with rare exceptions. This happened against the background of the decline in US stock indicators.
Japan's Nikkei 225 Index rallied slightly with an increase of 0.31%.
China's Shanghai Composite index rapidly went down dropping around 1.86%. The Hong Kong Hang Seng Index also moderately declined by 0.25%. The epidemiological situation in the country looks quite tense, although there are no deaths yet. On the last day alone in the PRC, the number of COVID-19 cases increased by 45 people, 25 cases of which had manifestations of the corresponding symptoms, while the remaining 20 were asymptomatic patients.
South Korea's Kospi Index slightly dropped 0.08%.
The Australian S & P / ASX 200 index also sank slightly by 0.27%.
Asia is quite sensitive to information that a consensus in negotiations on a new fiscal stimulus program in the US has not yet been found. The final decision-making process practically stands still. Moreover, the confrontation is only growing between Democrats and Republicans, and the differences are growing every day. Nevertheless, there is still hope that the situation will be successfully resolved in the near future.
Another factor for concern was the newly returned possibility of a second wave of the coronavirus pandemic in the world. The number of patients is growing steadily, and investors are losing a good mood.
The ongoing tensions between the US and China continue to create an impact in the Asian stocks. The conflict is gaining momentum, and there is no way out of it yet. The stock market participants have no choice but to start selling their assets in order to save capital from large losses.
The only ray of light in the clouds gathering over the stock market was the news that the coronavirus vaccine could appear in the public domain in a couple of months. Almost all pharmaceutical companies that develop it are in the final stages of clinical trials. Russian President Vladimir Putin announced on Tuesday the official registration of the world's first drug for coronavirus. However, the Russian Federation is not the only country working on the creation of a vaccine: about 100 companies are conducting parallel research, so one can hope that the world will soon be rid of COVID-19.
Meanwhile, things are not going well on the US stock market. Tuesday's trading ended with a reduction in stock indicators in all directions. The reason for this unexpected drop was an unexpected sell-off in technology companies.
The Dow Jones Industrial Average fell 0.38% or 104.53 points, pushing it to the level of 27,686.91. Thus, the winning streak of the indicator was interrupted, which lasted seven days in a row.
The Standard & Poor's 500 index fell 0.8% or 26.78 points. Its current level was at 3,333.69. Likewise, it demonstrated the first contraction since the seven-day growth marathon.
The Nasdaq Composite index fell quite seriously immediately dropping from 1.69% or 185.53 points. This led it to fall to 10,782.82 points.
According to some analysts' forecasts, if the US economy ends up in the most favorable scenario (coronavirus infection recedes and the number of infections declines), then the country will see slow but targeted growth in the near future. In addition, the tension associated with the lack of a final decision on the new program of financial incentives in the state should go away.
In the meantime, there has been a steady decline with the COVID-19 cases in the US. Over the past two weeks, it decreased by 18% which cannot but rejoice and inspire certain hopes for an immediate victory over the infection. This will be an impetus for a more restrained introduction of restrictive measures, which will affect the growth of business activity. The anticipated release of the vaccine, which should take place in a few months, only increases the confidence in a positive outcome of events.
The US President Donald Trump released a statement pointing out that he will take all possible and impossible measures to help protect the state's economy from the further negative impact of the crisis associated with the coronavirus pandemic.
Europe stocks, on the other hand, shifted to growth after some confusion at the beginning of the day. Market participants were worried by news of an increase in the number of COVID-19 cases in individual eurozone states. Now, this has been the focus of the attention of the investors.
Another important point for the EU market is other statistics on the growth of the corporate sector of the economy. The reports of companies continue to appear in the press, which also puts pressure on the market.
The general index of large enterprises in the European region Stoxx Europe 600 increased by 0.23% which sent it to the level of 371.61 points.
The UK FTSE 100 Index added 0.77%. France's CAC 40 index rose 0.26%. Italy's FTSE MIB Index went up by 0.43%. Spain's IBEX 35 Index rose 0.28%. And only the German DAX index recorded a slight rebound of 0.1%.
