Economy News

Asian stocks in peril while dollar in high demand – all due to rising COVID-19 fears

Asian stocks faced problems on Friday as investors sought to find safe space in the dollar. This drove the dollar index 0.398% higher after a two week high of 93.91.

Traders’ preference for safety helped the US government bonds. The yield on U.S. Treasuries Benchmark 10-year rose to 0.7306% from 0.734%.

“There is a bit of worry there and also at what we’re seeing in America and in Europe regarding the virus and how it seems to be taking hold pretty significantly again” said Grant Williamson. He is an investment advisor.

Stocks had a hard time making gains in early Asian trade with Australia’s S&P/ASX 200 down 0.02% and Japan’s Nikkei 225 futures adding just 0.06%. Hong Kong’s Hang Seng index futures rose 0.36%. E-mini futures for the S&P 500 rose 0.04%.

On Wall Street, the Dow Jones Industrial Average fell 0.07%, the S&P 500 0.15% and the Nasdaq Composite dropped 0.47%.

the unexpected rise in weekly joblessness in the USA could have a negative impact on the already weakened world economy. Adding to those fears is the second wave of COVID-19 in Europe.

in Asia, focus shifted to Canada-China relations after Canada ordered a national security review of Shandong Gold Mining Co Ltd’s proposal to acquire a gold mine in the Canadian Arctic. It is the most recent sign of pushback that is faced by China’s state miners.

In Europe, London will have a stricter COVID-19 lockdown from midnight on Friday as Prime Minister Boris Johnson seeks to tackle a hastily accelerating second coronavirus wave.

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