cloudyn.png
Thursday February 20th, 2020 4:01AM

Asian stocks edge mostly lower after China virus cases spike

By The Associated Press
Related Articles
  Contact Editor

Asian shares mostly fell Friday as investors turned cautious following a surge in cases of a new virus in China that threatens to crimp economic growth and hurt businesses worldwide.

Japan's Nikkei 225 fell 0.7% in morning trading to 23,667.18. Australia's S&P/ASX 200 inched up 0.1% to 7,112.60. South Korea's Kospi was little changed at 2,234.50. Hong Kong's Hang Seng slipped 0.3% to 27,730.00, while the Shanghai Composite dropped 0.7% to 2,906.07.

The pessimism echoes a decline on Wall Street that snapped a three-day streak of record highs for the S&P 500 and Nasdaq composite. The selling marked only the second day this month that the market has declined.

Investors had largely set aside worries about the economic impact of the virus outbreak the past two weeks. Markets rallied this week partly because the number of new cases appeared to be slowing.

Hopes were dashed by sharp increases in both the number of cases and newly reported deaths Thursday after the hardest-hit province of Hubei began counting doctors' diagnoses without waiting for laboratory results in hopes of getting patients treated faster.

“We’re in a data-dearth period in the sense that we’re not really going to know fully the effects of the impact of that on Asian and Chinese growth, as well as global growth, for at least several weeks,” said Lisa Erickson, head of traditional investments at U.S. Bank Wealth Management. “You’re just going to see some back-and-forth movement (in the market) until that time.”

The S&P 500 index dropped 5.51 points, or 0.2%, to 3,373.94. The Dow Jones Industrial Average slid 128.11 points, or 0.4%, to 29,423.31. It was down as much as 205 points earlier.

The Nasdaq fell 13.99 points, or 0.1%, to 9,711.97. The Russell 2000 index of smaller company stocks rose 4.36 points, or 0.3%, to 1,693.74.

The reclassification of the COVID-19 cases in Hubei brought a huge increase in the global tally, complicating efforts to understand the trajectory of the outbreak.

But Stephen Innes chief market strategist at AxiCorp, said he believes the economic impact from the virus outbreak would likely be limited and the disease might be contained by March.

“The market impact was little more than a pause in the general bullish upward trend rather than risk-off,” he said, referring to the reaction to the higher case numbers.

Businesses have already been hurting due to the outbreak and more of them are warning that the effects will linger through the year.

Organizers of the world’s biggest mobile technology fair cancelled the event, set to take place in Spain, because of health and safety concerns. Europe has had a scattered number of cases, mostly connected to Chinese travel.

Travel-related companies fell broadly Thursday, shedding some of their gains from earlier in the week. Airlines helped pull industrial sector stocks lower. United Airlines fell 1.5%.

MGM Resorts International, which gets about 20% of its revenue from the gambling haven of Macau, pulled its profit forecast for 2020. The stock lost 5.5%. Cruise line operator Carnival slid 2%.

Technology and health care stocks were among the biggest decliners, along with companies that rely on consumer spending. Cisco Systems fell 5.2%, Mylan slid 2.3% and Hanesbrands dropped 2.6%.

Household goods makers, utilities, real estate companies and communication services stocks notched gains.

Fashion company Ralph Lauren warned that the viral outbreak cut into fourth-quarter sales by an estimated $55 million to $70 million. The stock fell 0.6%.

Alaska Air Group bucked the trend, adding 1.5% after the airline said it will cooperate more closely with American Airlines on West Coast service. The airlines asked for government permission to expand revenue-sharing to cover international flights in Seattle and Los Angeles.

ENERGY:

Benchmark crude oil fell 5 cents to %51.37 a barrel. It rose 25 cents to settle at $51.42 a barrel. Brent crude oil, the international standard, lost 14 cents to $56.20 a barrel.

CURRENCIES:

The dollar rose slightly to 109.79 Japanese yen from 109.70 yen on Thursday. The euro weakened to $1.0837 from $1.0885.

___

AP Business Writers Alex Veiga and Damian J. Troise contributed.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Asian stocks edge mostly lower after China virus cases spike
Asian shares mostly fell as investors turned cautious following a surge in cases of a new virus in China that threatens to crimp economic growth and hurt businesses worldwide
9:46PM ( 30 minutes ago )
Warren has raised $6M since Iowa, says race is 'wide open'
Elizabeth Warren says she's raised about $6 million from online donors since last week's Iowa caucuses, fueled by people who want to see her stay in the Democratic presidential primary despite an underwhelming performance there and in New Hampshire
9:40PM ( 36 minutes ago )
Barr swipes at Trump: Tweets make it 'impossible' to do job
Attorney General William Barr has taken a public swipe at President Donald Trump, saying the president’s tweets about Justice Department prosecutors and cases “make it impossible for me to do my job
9:34PM ( 42 minutes ago )
Associated Press (AP)
Sticking to script: Bregman, Astros discuss sign stealing
Alex Bregman and other members of the Houston Astros have spoken at spring training about the sign-stealing scheme they used during their 2017 run to a World Series title and again the next season
8:44PM ( 1 hour ago )
2020 Democrats step up attacks to blunt Bloomberg's rise
Democratic presidential candidates hoping to revive their flagging campaigns are increasingly taking aim at Mike Bloomberg
8:38PM ( 1 hour ago )
New Mexico bid for recreational marijuana is all but doomed
New Mexico's bid to become the 12th U.S. state to legalize recreational use of marijuana abruptly fell flat after state senators in a Legislature dominated by Democrats rejected a bill that would have forced permission for sales in all of the state's cities and towns
7:39PM ( 2 hours ago )
AP Business
US brings new charges against Chinese tech giant Huawei
The Justice Department has added new criminal charges against Chinese tech giant Huawei and two of its U.S. subsidiaries
3:40PM ( 6 hours ago )
Newspaper chain McClatchy files for bankruptcy protection
McClatchy, the publisher of the Miami Herald, The Kansas City Star and dozens of other newspapers nationwide, is filing for bankruptcy protection
3:06PM ( 7 hours ago )
Outbreak and uncertainty; virus challenges global companies
The economic toll of China's viral outbreak continues to mount for corporations based in and outside of the country as factories are shuttered and the lives of their millions of Chinese customers are altered
1:57PM ( 8 hours ago )
AP Business - Corporate News
South Africa seeks more renewable energy amid power cuts
South Africa’s president says the coal-dependent country will turn to more renewable energy as one way to help ease power cuts that have “severely set back” efforts to rebuild the weak economy
3:41PM ( 6 hours ago )
US stocks wobble mostly higher after virus cases spike
Major U.S. stock indexes are wobbling mostly higher in afternoon trading Thursday after China reported a spike in cases of the new virus that threatens to crimp economic growth and hurt businesses worldwide
2:18PM ( 7 hours ago )
Buyers face more competition amid shortage of home listings
Americans shopping for a home this spring may face more competition than they have in years
2:01PM ( 8 hours ago )
AP Business - Economy
Stocks open lower on Wall Street as virus cases spike
Stocks are opening lower on Wall Street, following declines overseas after China reported a sharp spike in deaths and infections from a new virus after the hardest-hit province of Hubei applied a new classification system that broadens the scope of diagnoses
9:45AM ( 12 hours ago )
Global shares fall as virus cases spike in China
Global shares mostly have fallen after China reported a spike in virus cases
8:47AM ( 13 hours ago )
Global shares mostly lower as new China virus cases spike
Global shares are mostly lower as reported cases of the new virus jumped in China
5:52AM ( 16 hours ago )
AP Business - Financial Markets
Joey Logano wins first Daytona 500 qualifying race
Joey Logano won the first of two qualifying races for the Daytona 500 and will start from the second row in Sunday's season opener
9:50PM ( 26 minutes ago )
Warren has raised $6M since Iowa, says race is 'wide open'
Elizabeth Warren says she's raised about $6 million from online donors since last week's Iowa caucuses, fueled by people who want to see her stay in the Democratic presidential primary despite an underwhelming performance there and in New Hampshire
9:40PM ( 36 minutes ago )
Barr swipes at Trump: Tweets make it 'impossible' to do job
Attorney General William Barr has taken a public swipe at President Donald Trump, saying the president’s tweets about Justice Department prosecutors and cases “make it impossible for me to do my job
9:34PM ( 42 minutes ago )
China's virus crackdown leaves millions working at home
China has told employees who can work from home to stay there while the government fights a virus outbreak with the most extreme anti-disease measures ever imposed
9:31PM ( 45 minutes ago )
Cruise stranded by virus fears ends with roses in Cambodia
Hundreds of cruise ship passengers long stranded at sea by virus fears cheered as they finally disembarked and were welcomed to Cambodia by the nation's authoritarian leader, who handed them flowers
9:02PM ( 1 hour ago )