Asia report: Markets mixed amid concern over virus resurgence

Markets in Asia finished in a mixed state on Wednesday, as investors digested reports of fresh resurgences in coronavirus infections in a number of countries that have relaxed their economic and social restrictions.

In Japan, the Nikkei 225 was down 0.49% at 20,267.05, as the yen strengthened 0.08% against the dollar to last trade at JPY 107.05.

Automation specialist Fanuc was up 0.99%, while among the benchmark’s other major components, Uniqlo owner Fast Retailing was down 2.87% and technology giant SoftBank Group lost 1%.

The broader Topix index was 0.14% weaker by the end of trading in Tokyo, closing at 1,474.69.

On the mainland, the Shanghai Composite was up 0.22% at 2,898.05, and the smaller, technology-centric Shenzhen Composite was 0.67% firmer at 1,822.85.

South Korea’s Kospi was up 0.95% at 1,940.42, while the Hang Seng Index in Hong Kong lost 0.27% to 24,180.30.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics up 1.36%, while chipmaker SK Hynix lost 2.45%.

Investor attention remained firmly on the ongoing Covid-19 coronavirus pandemic, after US equities fell overnight amid concern around the speed at which parts of the US were reopening their economies.

Dr Anthony Fauci, director of the US National Institute of Allergy and Infectious Diseases, warned the Senate on Tuesday that the country could see additional outbreaks if states lift their restrictions too rapidly.

In Asia, parts of mainland China and South Korea have also seen a rise in cases following the lifting of restrictions, with authorities in Beijing announcing plans to test all 11 million residents of the virus’s original epicentre in Wuhan after a rise in cases there.

“Countries such as China, South Korea and Germany have eased up on lockdown restrictions, which was seen as progress, but sadly the countries have seen an increase in the rate of new Covid-19 cases,” said CMC Markets analyst David Madden.

“The rate of new infections hasn’t been huge, but it has been enough to raise a few eyebrows.

“Governments have navigated their way through the pandemic so far, so it is likely they will be able to deal with any resurgences along the way.”

Oil prices were lower as the region went to bed, with Brent crude last down 1% at $29.68 per barrel, and West Texas Intermediate off 0.89% at $25.55.

In Australia, the S&P/ASX 200 managed gains of 0.35% to 5,421.90, while across the Tasman Sea, New Zealand’s S&P/NZX 50 slipped 0.28% to 10,788.03.

The down under dollars were mixed against the greenback, with the Aussie last 0.25% stronger at AUD 1.5413, while the Kiwi weakened 0.83% to last trade at NZD 1.6594.