Asia Stocks Crumble after a Bloodbath in Wall Street Overnight on Concerns of 2nd Wave

Asia Stocks Crumble after a Bloodbath in Wall Street Overnight on Concerns of 2nd Wave and the Possibly Slow Economic Recovery.

The plummet in Asia stocks continued on Friday after the overnight bloodbath in Wall Street amid concerns over the second wave of the coronavirus pandemic in the U.S.

 

As of 8:54 local time in Thailand (GMT+7), Nikkei fell 2.07%, SSEC dropped 1.05%, HSI plummted 1.63%, ASX 200 plunged 2.80% and Kospi lost 2.90%.

Overnight, Dow Jones dropped 1,861.82 points or 6.9% to close at 25,128.17 points, while S&P 500 fell 5.89% and Nasdaq saw a 5.27% drop after reaching its all-time high in the previous session.

 

The retreat came after the Fed’s Chairman Jerome Powell affirmed of maintaining the policy rates at 0-0.25% through 2022, raising concerns of the slow economic recovery in the U.S. Moreover, the U.S. coronavirus cases just surpassed 2 million with 112,834 deaths, holding the record of most infections and deaths in the world. Meanwhile, 18 states in the U.S. are seeing an uptick of new cases, causing concerns of the second wave amid mass protests in the nation.

 

Tisco Securities stated that the valuation in SET Index is quite high and could be facing a profit-taking session, giving a support level at 1,375-1,360 points and a resistance level at 1,400-1,405 points, and advised investors to keep an eye on phase 4 easing measures.