Asian stocks decline on virus concerns, China shares halt rally

Asian shares and U.S. stock futures dropped on Friday. This followed after an upsurge in new coronavirus cases in several U.S. states dimmed the possibility of an economic recovery. Meanwhile, investors focused on corporate earnings.

MSCI’s broadest index of Asia-Pacific shares outside Japan recorded a 0.76% decline. Australian stocks declined 0.43% as Japanese stocks shed 0.4%.  Chinese shares dropped 0.72%, recording their first decline in more than a week. This could be attributed to investors’ move of booking profits as equities jumped to a five-year peak.

E-mini futures for the S&P 500 erased early gains, recording a 0.01% decline. In addition to this, investors had resorted to safe havens and disregarded risk, lifting the yen and dragging the Antipodean currencies to low levels.