Most of the Asian equity benchmarks traded lower in early deals on Thursday, as the market remained cautious with the continued spike in the covid cases over the globe and as more regions might impose stricter restrictions if the viral spread does not subside spurred concerns about the pace of global economic recovery. Oil stocks are trading lower with the retreat in crude oil rates overnight. Technology and financial sector shares were mostly lower in the session. Japan’s Nikkei extended its losses with the benchmark just above the 28,300 level as the market sentiments dulled followed by the continuing surge in the new wave of coronavirus cases, particularly in Olympic city Tokyo and the government is planning to declare another COVID-19 state of emergency in Tokyo until August 22 to combat a recent surge in infections. The Tokyo metropolitan government reported 920 new infections on Wednesday, the highest figure since mid-May. Among the Asian markets, Japan, Singapore, Hong Kong, South Korea, China, and Malaysia are trading lower. Bucking the trend, Taiwan and Indonesia is trading higher.
Nikkei 225 down by 211.36 points or 0.75% to 28,155.59, Straits Times slipped 17.08 points or 0.54% to 3,124.52, Hang Seng lower by 559.50 points or 2.00% to 27,401.12, KOSPI curtailed 23.81 points or 0.72% to 3,261.53, Shanghai Composite dipped by 20.09 points or 0.57% to 3,533.63 , and FTSE Bursa Malaysia KLCI narrowed by 14.31 points 0.94% to 1,515.84.
On the flip side, Taiwan Weighted rose by 39.58 points or 0.22% to 17,890.27, and Jakarta Composite added by 7.61 points 0.13% to 6,051.65.