Asian stocks slip as gloomy outlook dampens market sentiment

Asian stocks fell earlier on Monday as the surge in COVID-19 cases in several countries dampened hopes for a quick economic recovery.

The total number of cases worldwide has reached over 10 million, resulting in over 500,000 deaths as of June 29 according to data from the Johns Hopkins University.

China’s Shanghai Composite fell by 0.54% at 10:40 PM ET (03:39 AM GMT), while the Shenzhen Component dipped by 0.38%. China’s National Bureau of Statistics is expected to publish June’s Purchasing Managers’ Index (PMI) on Tuesday.

Hong Kong’s Hang Seng Index lost 0.49%, as China’s National People’s Congress Standard Committee readies to pass its national security laws for Hong Kong and Macau on Tuesday.

Japan’s Nikkei plunged 1.60%, after the country’s Ministry of Economy, Trade, and Industry on Monday saw a sharp 12.3% decline in retail sales for May year-on-year.

Meanwhile, South Korea’s KOSPI lost 1.20% after Finance Minsiter Nam-Ki Hong dismissed the need for a fourth budget in order to combat the pandemic.

Down Under, the ASX fell by 1.62% after the heavily-populated state of Victoria struggled to control a surge in COVID-19 cases in the area.