Stocks tumble as new virus outbreaks cast shadow on global economic recovery
Asian stocks fell on Tuesday as investor outlook continued to darken amid increasing concerns over the COVID-19 delta variant. Fears of the virus’ negative impact on the global economic recovery sent riskier assets on a steep downward trend.
MSCI’s gauge of Asia Pacific stocks outside of Japan experienced losses of almost 1%, while Australia’s S&P/ASX 200 dipped 0.44%.
Japan’s Nikkei 225 experienced its six-month low, dropping almost 1%. Meanwhile, in China, the Hang Seng Index plummeted 1.16% while the country’s benchmark CSI300 Index dropped 0.53%.
In Europe and the US, markets look set to bounce back with FTSE futures and E-mini futures for the S&P 500 index up 0.06% and 0.22%, respectively.
On Wall Street, stocks went down as much as 2% on Monday, with the Dow posting its worst day in nine months as the COVID-19 death toll in the US continued to rise.
Recently, riskier assets have been put under pressure worldwide as countries continued to grapple with the more virulent Delta variant of the coronavirus. Adding to the pressure are concerns that new lockdowns and restrictions due to the rising number of cases could overturn the global economic recovery.