ASIAN STOCKS OPEN LOWER AS GLOBAL RECOVERY HOPES DIM
Asian stocks opened lower on Thursday, tracking a sharply lower Wall Street session amid fresh concerns that the global economic recovery is running out of steam, Imani Moise reported for Reuters on September 24, 2020.
US stocks fell on Wednesday after data showed business activity slowed in September, with gains at factories more than offset by a retreat at services industries. Investors now await weekly data due later on Thursday, which is expected to show US jobless claims fell slightly but remained elevated, indicating the world’s largest economy is still far from recovering.
The data come after a Federal Reserve official said it will be hard to boost employment without further government stimulus. However, with congress locked in a stalemate, analysts see immediate fiscal support as unlikely. “Equity sentiment remained positive in Europe but quickly soured in the US as Fed speakers urged further fiscal support for the economy,” Westpac Institutional Bank analysts said in a note.
In Asia, E-mini futures for the S&P 500 fell 0.11%, Australia's S&P lost 1.6% and Japan's Nikkei 225 declined 0.56%. Hong Kong's Hang Seng index futures dropped 0.92%. Additionally, a second wave of coronavirus infections in Europe threatened the economic recovery in that region pushing equities lower and propping up the safe-haven the safe haven dollar. On Wednesday, the Dow Jones Industrial Average fell 1.92%, the S&P 500 lost 2.37% and the Nasdaq Composite dropped 3.02%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.04% higher.
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