Japanese Nikkei 225(N225) refused 2%. South Korea Kospi (KOSPI)fell 1.6%. Hong Kong Hang Seng index(HSI) they lost 1.2% while the Chinese Shanghai Composite(SHCOMP) shed 0.8% after trading for the first time after an extended break.
Futures of U.S. stocks, meanwhile, were shut down after sharp falls on Friday. Dow(indu) Future growth increased by 15 points or almost 0.1%. The future for S&P 500(SPX) were higher by 0.1%, while Nasdaq(COMP) Futures fell 0.2%.
On Friday, The Dow knocked down more than 700 points as some states were forced to pause their reopening due to an increase in Covid-19 cases. upticks are reported in 36 states, including Florida, which some experts have warned could be the next epicenter of infections. Officials there and across the United States are also warning of an increase in cases among younger people.
“The recovery of the infection rate, especially in the US, shows that the road to full recovery will be long and medical solutions, such as vaccines, will be needed,” Tai Hui, chief Asian market strategist for JP Morgan Asset Management wrote in a note Monday.
The situation in the United States could also raise concerns in Europe, as European governments are considering more border openings during the summer holiday season, he added.
“We expect market sentiment to turn into caution in the near future, with investors shielding themselves from the pandemic and constant tensions between the US and China,” Hui said.
In the oil trade, U.S. oil fell 2% on Monday during Asian hours on Monday at $ 37.74 a barrel. Brent, the world reference value for oil, lost 1.7% in trade of $ 40.23 per barrel.