Asian shares decline on virus, Sino-U.S. concerns

Asian stock markets plummeted on Tuesday, while oil dropped and a safety bid boosted the dollar’s performance. This followed after emerging Sino-U.S. tensions and new novel coronavirus restrictions in California dampened optimism as earnings season approaches.

MSCI’s broadest index of Asia-Pacific shares outside Japan shed 1.2%. Japan’s benchmark index Nikkei declined 0.8%, easing from its one-month high record on Monday. The dollar put the Aussie and the kiwi under turbulence.

The moves could be attributed to a selloff monitored on Wall Street after reopening rollbacks in California. The state was put under virus-driven restrictions, with bars, restaurants, and movie theaters halting operations as mandated by Governor Gavin Newsom.  

S&P 500 futures were seen flat in Asia after recording a total of 0.9% loss on Monday.