Asia report: Markets mostly lower as Covid drug hopes dashed
Markets in Asia finished mostly lower on Friday, as investors digested fresh reports that cast doubt over their previous hopes for a potential treatment for Covid-19.
In Japan, the Nikkei 225 was down 0.86% at 19,262.00, as the yen weakened 0.06% against the dollar to last trade at JPY 107.66.
Of the major components on the benchmark index, automation specialist Fanuc was down 2.59%, fashion firm Fast Retailing lost 2%, and technology conglomerate SoftBank Group was 1.21% weaker.
The broader Topix index also ended its session in the red, slipping 0.33% to settle at 1,421.29.
On the mainland, the Shanghai Composite was 1.06% weaker at 2,808.53, and the smaller, technology-heavy Shenzhen Composite was off 1.48% at 1,736.93.
South Korea’s Kospi was down 1.34% at 1,889.01, while the Hang Seng Index in Hong Kong lost 0.61% to 23,831.33.
Both of the blue-chip technology stocks were weaker in Seoul, with Samsung Electronics down 1% and chipmaker SK Hynix losing 1.45%.
The coronavirus crisis continued to be at the fore of investor concerns, with a fresh report from the Financial Times overnight pouring cold water on hopes of a potential successful treatment for Covid-19.
It said that documents inadvertently published by the World Health Organisation suggested that the drug ‘remdesivir’, developed by Gilead Sciences - did not improve the condition of patients with the virus.
The FT said the documents referred to a clinical trial in China.
Gilead Sciences did note, however, that the study was terminated early due to low patient enrolment, meaning it could not provide statistically meaningful conclusions.
“As such, the study results are inconclusive.”
The most recent data from John Hopkins University showed more than 2.7 million confirmed cases of the virus worldwide, with more than 190,000 lives now lost to it.
“The news took the wind out of the bulls’ sails, and US stocks broadly finished flat,” noted CMC Markets analyst David Madden.
“Gilead still maintains the drug can benefit Covid-19 patients, but dealers remain unimpressed.”
Oil prices did spend much of the Asian session adding to their Thursday rebound, but gave up that momentum as the region entered the weekend.
Brent crude was last down 0.33% at $21.26 per barrel, while West Texas Intermediate stood flat at $16.50.
In Australia, the S&P/ASX 200 went against the regional trend, managing gains of 0.49% to finish its trading day at 5,242.60.
The country’s big four banks were all in the green, with Australia and New Zealand Banking Group up 0.06%, Commonwealth Bank of Australia ahead 0.09%, National Australia Bank rising 0.25%, and Westpac Banking Corporation 0.33% firmer.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 closed down 0.25% at 10,419.48, led lower by flag carrier Air New Zealand, which was down 5.9%.
The airline had confirmed earlier in the session that direct flights to Buenos Aires would not be restarted after the Covid crisis, and that the launch of non-stop flights between Auckland and New York City would now be delayed until beyond 2021.
It was a weaker day for the down under dollars, with the Aussie last 0.03% weaker against the greenback at AUD 1.5702, as the Kiwi retreated 0.1% to NZD 1.6662.