Japan
Nikkei 225 (N225) decreased by 2%. South Korea
Kospi (KOSPI)down 1.6%. Hong Kong
Hang Seng Index (HSI) lost 1.2%, while China
Shanghai Composite (SHCOMP) down 0.8% after trading for the first time since a long vacation.
US futures, meanwhile, were muted following Friday’s sharp decline.
Dow (INDU) futures edged up 15 points, or nearly 0.1%. Futures for
S&P 500 (SPX) up 0.1%, meanwhile
Nasdaq (COMP) Futures fell 0.2%.
On Friday,
The Dow fell more than 700 points because several countries were forced to stop their reopening amid the increasing case of Covid-19. Upticks
has been reported in 36 countries, including Florida, which some experts have warned could be the center of the spread of subsequent infections. Officials there and throughout the United States also warned of an increase in cases among young people.
“The rebound in infection rates, especially in the US, shows that the path to full recovery will be long and requires medical solutions, such as vaccines,” Tai Hui, head of Asian market strategy for JP Morgan Asset Management wrote in a note Monday.
The situation in the United States could also trigger fears in Europe, because European governments are considering opening more borders during the summer holiday season, he added.
“We expect market sentiment to turn cautious in the near term, with investors protecting risks from the pandemic and ongoing tensions between the US and China,” Hui said.
In oil trading, US crude oil futures fell 2% to trade at $ 37.74 a barrel during Asian hours on Monday. Brent, the world oil benchmark, lost 1.7% to trade at $ 40.23 a barrel.
