(Bloomberg) — Asian stocks looked set for modest losses Monday as investors mulled worldwide coronavirus cases that continue to mount.
Futures pointed to modest declines in Tokyo, Hong Kong and Sydney. U.S. contracts dropped on Friday with markets shut for a holiday. The Australian dollar edged lower as the country introduced more stringent measures to keep residents at home in an outbreak hotspot. Other currencies were little changed. The WHO reported a one-day high in global infections over the weekend with cases crossing 11.3 million.
Investors are weighing a global equity market that remains about 40% above its March lows amid an economic recovery under threat from the continuing spread of the virus. Goldman Sachs Group Inc. now expects a wider contraction in the U.S. economy this year, saying third-quarter growth won’t be as strong as predicted.
“The recovery going forward will likely be slower than the ‘Deep V’ rebound seen so far in some data as second wave fears will add to consumer caution,” said Shane Oliver, head of investment strategy at AMP Capital Investors Ltd. “Trends in new coronavirus cases along with pressure on medical systems will continue to be watched closely, particularly in U.S. states.”
Here are some key events coming up:
Monetary policy decisions are due Tuesday in Australia and Malaysia.The EIA crude oil inventory report comes Wednesday.All eyes will be on the U.S. weekly jobless claims report on Thursday.Singapore holds its general election on Friday.
These are the main moves in markets:
Futures on Japan’s Nikkei 225 fell 0.5%.Hang Seng futures retreated 0.2%.Futures on Australia’s S&P/ASX 200 Index fell 0.6%.
The yen was little changed at 107.50 per dollar.The offshore yuan was at 7.0678 per dollar.The Aussie slid 0.1% to 69.30 U.S. cents.The euro bought $1.1244.
The yield on 10-year Treasuries lost one basis point on Thursday to 0.67%, before the Friday market closure.
West Texas Intermediate crude oil was at $40.32 a barrel.Gold was at $1,772.05 an ounce.
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