Asian stock markets continue the global fallout

Stock markets in Asia on Tuesday suffered the fallout from investor concern in the United Kingdom and the United States over the rise in coronavirus cases.

The biggest drop in the region was recorded in Australia, where stocks hit their lowest in three months.

Investors were also alarmed by dwindling hopes for more financial support for the US economy.

Equity markets tumbled across South Korea, Hong Kong and China, while Japan was closed for a public holiday.

Stock markets in the United Kingdom and the United States suffered heavy losses on Monday due to concerns that a renewed spike in coronavirus cases could damage economic prospects.

More than £ 50 billion was wiped out of British stocks, and caused similar declines in European and US equity markets.

Negative sentiment has spread to Asia, which was previously the focus of optimism from China’s ongoing economic recovery.

Australian shares fell to their lowest level since mid-June under pressure from mining and energy stocks.

Big miners BHP Group and Rio Tinto slipped about 2%.

Multiple tensions

“The biggest problem for local markets is how the battle for super-dominance of the tech sector between the US and China is being fought, which is viewed through the lens of the ByteDance / Oracle-Walmart deal,” said Stephen Innes, a market analyst in Sydney. AxiCorp based financial company.

He added that “the risks of the elections also appear in the foreground with the first American election debate in the twenty-ninth, which doubles matters.”

In Europe, bank stocks were affected by an additional set of Fears such as money laundering allegations It appeared in leaked files.

HSBC, the bank that was the epicenter of the scandal, saw its share price drop 5.3% in London, but the discoveries dragged the entire sector down, with other major banks down by a similar amount.

HSBC The shares hit their lowest level in 25 years They continued to decline in Hong Kong on Tuesday and were down another 3%.

Shares in Britain’s Standard Chartered bank, which was also mentioned in the leaked papers, fell 2% to reach their lowest level in 18 years in the Hong Kong market.