BEIJING – Asian stock markets followed Wall Street lower Friday on worries economic recoveries might fade as coronavirus cases increase in the United States and some other countries.
Benchmarks in Shanghai, Tokyo, Hong Kong and Southeast Asia retreated a day after strong gains driven by the rise of U.S. tech stocks.
Global stock prices have recovered most of this year’s losses on optimism about a recovery from the coronavirus pandemic. But forecasters warn the rise might be too big and too fast to be supported by uncertain economic conditions.
On Wall Street, the benchmark S&P 500 index lost 0.6% overnight.
“The market is concerned about the uptick in cases globally,” said Stephen Innes of AxiCorp. in a report. “Money is funneling into perceived safe areas of the market like tech, which should hold up broader indexes to a degree.”
The Shanghai Composite Index lost 0.9% to 3,420.11 and the Nikkei 225 in Tokyo shed 0.2% to 22,476.74. The Hang Seng in Hong Kong retreated 1% to 25,942.39.
The Kospi in Seoul lost 0.8% to 2,149.37 and Sydney's S&P-ASX 200 was down 0.2% at 5,943.20. New Zealand and Jakarta also retreated while Singapore markets were closed.
On Wall Street, the S&P 500 declined to 3,152.05. The Dow Jones Industrial Average dropped 1.4% to 25,706.09.