- Summary:
- Asian stocks trade lower on Wednesday amid concerns over a second wave of coronavirus outbreak. International Monetary Fund (IMF) economists warned that
Asian stocks trade lower on Wednesday amid concerns over the second wave of coronavirus outbreak. International Monetary Fund (IMF) economists warned that Asia and Europe risk a coronavirus outbreak relapse if they ease lockdowns prematurely and without measures to identify and contain new infections in place.
Infectious disease Dr Anthony Fauci said yesterday that opening the economy early means “a real risk that might trigger a coronavirus outbreak that we may not be able to control,” that could lead to unnecessary deaths and a pullback in economic recovery. Dr Anthony Fauci also added that “If you think we have it completely under control, we don’t.”
Around the world, about 290,000 people have died, with the US surpassing 82,000 deaths. The total number of coronavirus infections is over 4.2 million.
Investors wait today a speech by Federal Reserve Chairman Jerome Powell amid rising speculation that Fed could adopt negative interest rates.
Nikkei 225 finished 0.49% lower at 20,267. The Hang Seng Index is 0.06% higher at 24,263. The Shanghai Composite index is 0.28% higher at 2,898. The FTSE Straits Times index in Singapore is 0.38% lower at 2,577.
The Aussie ASX 200 index is 1.00% lower at 5,349. Australia’s 2020-21 budget, was due to be released on Tuesday but delayed until October to assess the full economic impact of the coronavirus outbreak. Treasurer Frydenberg said that he expects GDP will fall more than 10% in the second quarter, which would be the biggest drop on record.
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Nikkei 225 Lower But keeps The Positive Momentum
Nikkei 225 finished 0.49% lower at 20,266 mirroring Wall Street losses. On the data front the Japan Eco Watchers Survey Current, came in at 7.9, topping the expectations of 4.2 in April. Japan Eco Watchers Survey Outlook, registered in at 16.6, also above forecasts of 15.2.
From a technical perspective, on the upside, initial support stands at 20,056 today’s low. If the Nikkei index breaks below, then the next support will be met at 19,436 the low from May 7 trading session. In case of more selling pressure, the next support zone stands at 19,308 the 50-day moving average.
On the other side, minor resistance for the Nikkei 225 index stands at 21,329 the daily high. The next resistance for the index stands at 20,555 the high from May 11. If Nikkei moves above 20,555, the next supply zone is at 21,040 the high from March 6.