Asian shares decline on virus-driven concerns

Asian share markets and U.S. stock futures recorded a weak trading session on Wednesday. This followed after surging coronavirus cases in some countries dimmed the strength of global growth and dragged crude oil demand.

MSCI’s broadest index of Asia-Pacific shares outside Japan tallied a 0.6% drop. Australian shares plunged 1.25%, while Chinese shares traded 0.46% lower. Tokyo shares declined 1.79%, with investors’ sentiment heavily hurt by the possibility of lockdown reimplementation in Tokyo, Osaka, and surrounding areas due to an increase in coronavirus cases.

Asia’s weak performance came after Wall Street’s subdued session. While rapid vaccine rollouts in the United States, Brazil, and Europe boosted investors’ enthusiasm, India’s surging COVID-19 infections and travel restrictions will likely cap the global economy.