Asian stocks slump; gold and oil offer brace

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Asian stocks slump; gold and oil offer brace

Stock markets in Asia slumped on Wednesday morning on the back of media reports that the much-longed-for vaccine for the fast-spreading virus was still far away. Additionally, this also added to the worry about normalcy returning to the world following the end to the pandemic.

While Nikkei did gain 0.7% riding on a high provided by the Japanese currency, the yen; Hang Seng – the Hong Kong stock market – lost about 0.1%. Speaking about these troubling numbers, Australian firm Tribeca Investment Partners’ portfolio manager Jun Bei Liu said, “This is probably more a stabilisation than anything else, because markets have rallied hard on opening up and the potential for a V-shaped recovery.

The market is a little bit directionless...from here on, it certainly feels like we will see a lot of poorer economic data”. Meanwhile, in the global bullion market, gold gained some traction rising to $1,750.19 an ounce.

Crude oil figures, too, showed some steadiness. For this whole week, Reuters reported the Brent crude had steadied by at least 7% and were pegged at $34.73 a barrel. The US crude, meanwhile, was pegged at $31.97 per barrel. A market analyst of the Singaporean DBS Bank pointed out that global economic activities are far from being normal despite the cutting back on the stringency in order to revive economies after the virus.

“While countries have started to relax restrictions on economic and social activities, economies will not return to where things were before the outbreak. Geopolitical tensions, especially between the U.S. and China, have also returned and are likely to intensify into the U.S. elections in November,” said the analyst in his note.