Asian stocks see biggest sell off amid COVID-19 surge

Asian stocks saw its biggest sell off in eight sessions on Thursday as the rise in COVID-19 cases and the lowering of economic forecasts by the International Monetary Fund dented confidence in a recovery. However, bonds saw some gains, while the U.S. Dollar held steady.

MSCI’s broadest index of Asia-Pacific shares lost 0.7%, while Japan’s Nikkei slipped by 1.1%.

Down Under, the ASX 200 lost 2.1%.

U.S. stock futures dipped by 0.4%, signaling that Wall Street’s slide on Wednesday may need more for recovery.

European stock futures, despite strong data, last traded slightly in the red.

Germany’s DAX fell by 0.1%, while EuroSTOXX futures dipped by 0.3%.

Meanwhile, Britain’s FTSE futures lost 0.4%.

American states including Florida, Oklahoma, and South Carolina reported a record surge in new COVID-19 cases on Wednesday, while Australia reported its biggest daily rise in infections in two months.

Market sentiment further soured when the International Monetary Fund changed its projections from a 3% contraction in global GDP to a 4.9% in 2020.

Meanwhile, the U.S. Dollar held its ground to broad gains overnight, recovering from a near 2-week low.