The stock markets in Asia suffered considerably again on Tuesday due to the fallout and investors from the US and the UK are suspecting a rise in the number of coronavirus cases.
The stock markets of China, South Korea, Australia, and Hong Kong were also down. Investors around the world are also shaken after continuously losing hope for financial support from the US.
The opening numbers in the European markets are, however, a bit higher on Tuesday. London’s 100 was at 5826.24 points with a share index increase of 0.4%. Australia’s All Ordinaries was down by 0.7% at 5,973.50, Hang Seng from Hong Kong by 1% at 23,720.06, the Shanghai Composite by 1.3% at 3,274.30, and Kospi from South Korea by 2.38% at 2,332.59.
Japan had closed its markets for a public holiday. On Monday, the heavy losses suffered by the UK and the US markets feared a rise in the number of cases will impact the economy again. UK shares lost more than £50bn asset that caused severe downfalls across the stock markets of the US and Europe.
This sentiment has now entered the Asian markets which previously led the benchmark of economic restoration given China’s continuous economic recovery. Since mid-June, Australian shares came down to its lowest levels and its energy and mining stocks are severely under pressure. Some of the most significant mining farms like Rio Tinto and BHP Group both fell by 2%.
Stephen Innes, market strategist at Sydney-based financial firm AxiCorp said that one of the most major issues faced by local markets is how to sustain the dominance of the technology sector between China and the US that is currently being reviewed through the ByteDance /Oracle -Walmart deal.
He also said that another thing that is compounding the overall situation is the upcoming US Presidential Election debate set for the 29th.
In other news, Europe was recently under the radar where banking shares were substantially effected by another set of concerns regarding allegations of money-laundering. The news broke out through leaked files and the falls were carried into Asian trading.
HSBC was the center of the scandal as its share price fell a whopping 5.3% in London this Monday. Revelations in the same case caused a severe impact across the entire finance sector. Many other banks associated with this scandal dropped a similar amount.
This time, HSBC’s shares have hit the lowest in the last 25 years but continue to slide in Hong Kong on Tuesday resulting in an additional 2% fall.
Standard Chartered, a UK-based bank, and some of its shares were also named in the leaked papers. This led to a 2.6%fall on Tuesday resulting in the lowest hit of the past 18 years in the Hong Kong market.