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Asian stock markets continue to have global effects

The biggest decline in the region was Australian stocks, which hit a three-month low.Image copyright
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Stock markets in Asia suffered on Tuesday from the effects of British and American investors worried about the increase in coronavirus cases.

The largest decline in the region was registered in Australia, where shares reached a three-month low.

Investors were also shaken by fading hopes for more financial support for the US economy.

Stock markets fell in South Korea, Hong Kong and China, while Japan closed for a public holiday.

On Monday, stock markets in the United Kingdom and the United States suffered heavy losses due to fears that the resumption of coronavirus cases would ruin the economic outlook.

More than £ 50bn was wiped out by UK stocks, causing similar declines in European and US stock markets.

Negative sentiment has spread to Asia, which has previously been the focus of optimism over China̵

7;s ongoing economic recovery.

Australian stocks were pulled to their lowest level since mid-June under pressure from production and energy reserves.

Major mining companies BHP Group and Rio Tinto fell about 2%.

Lots of tension

“The biggest problem for local markets is how the US-China technology dominance battle is being played, which is seen through the lens of the ByteDance / Oracle-Walmart deal,” said Stephen Ines, market strategist at Sydney-based financial firm AxiCorp.

“Election risk also comes to the fore with the first debate on the US election on the 29th, which complicates matters,” he added.

In Europe, bank stocks have been affected by additional concerns as allegations of money laundering have surfaced.

HSBC, the bank at the center of the scandal, reported a 5.3% drop in its share price in London, but the revelations dragged the entire sector, with other large banks falling by a similar amount.

Shares of HSBC hit a 25-year low and continued to fall in Hong Kong on Tuesday, falling another 3%.

Shares of the UK-based Standard Chartered Bank, which was also mentioned in the leaked information, fell 2% to reach an 18-year low on the Hong Kong market.

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