Asian stocks fall on worries over rising virus cases, US aid

Full Screen
1 / 5

Copyright 2020 The Associated Press. All rights reserved

People wearing face masks walk past a bank's electronic board showing the Hong Kong share index in Hong Kong, Wednesday, Oct. 28, 2020. Asian shares headed lower Wednesday on worries about rising virus counts and Washington's inability to deliver more aid to the economy. (AP Photo/Kin Cheung)

Asian shares headed lower Wednesday on worries about rising virus counts and Washington's inability to deliver more aid to the economy.

The uncertainty surrounding the upcoming U.S. election also has regional market players hesitant to make big moves.

Japan's benchmark Nikkei 225 fell 0.3% in morning trading to 23,420.93, while South Korea's Kospi declined 0.2% to 2,325.22. Australia's S&P/ASX 200 was edged less than 0.1% lower to 6,049.90. Hong Kong's Hang Seng dipped 0.7% to 24,604.31, while the Shanghai Composite shed 0.4% to 3,240.92.

The optimism that the coronavirus pandemic may have been somewhat under control has dissipated as infections continue to rise in Europe, the U.S. and other parts of the world. Few sectors, such as communication and IT services, are gaining amid the outbreaks, deepening the pessimism in Asia.

“Sustained COVID-19 worries keep the risk sentiment in check for Asia, likewise finding the market choosing to err on the side of caution,” said Jingyi Pan, senior market strategist at IG.

On Wall Street, the S&P 500 fell 0.3% to 3,390.68. The Dow Jones Industrial Average lost 0.8% to 27,463.19. However, the tech-heavy Nasdaq composite rose 0.6%, to 11,431.35.

Caution continues to hang over markets. Governments have begun to impose restrictions on businesses and other activities to help curb surging infections. That could choke off improvements seen since the summer. Fresh pandemic precautions are also drawing a public backlash despite spiking levels of illness in European countries.

Investors are clamoring for Congress to deliver another round of stimulus for the U.S. economy, but they’re increasingly acknowledging it won’t happen anytime soon.