Asian stock markets fell on Friday as the number of Coronavirus cases rose significantly. Investors are worried that equities will be the hardest hit, as people would look for safer havens such as gold and government bonds.
At the time of publication of this article on April 3, the total number of Coronavirus infected people has officially crossed one million. The World Health Organisation has urged people to follow safety protocols strictly.
Here’s how the Asian stock markets fared on Friday:
- Hong Kong’s Hang Seng Index is down by 0.19%.
- The Shanghai Stock Exchange fell by 0.6%.
- The Shenzhen SE Composite Index dropped by 0.47%.
- Japan’s Nikkei fell by 1.5 percent.
- India’s BSE Sensex fell by more than 2%.
The situation is similar across other Asian nations as well. Markets brace for a further downside as the number of COVID-19 cases has been increasing with no immediate cure in sight.
Indian BSE Sensex and Nifty lose more than 2% on Friday
Indian investors were anticipating some positive news from the markets as the Dow Jones Futures and the Index in the US ended the previous trading session with an upside of 2%. However, things were not to be the same with the BSE Sensex, as it plunged 2% on the last trading day of a very volatile week.
India is a net importer of Crude oil. Hence, the fall in Crude prices was not upsetting the Indian investors. On the contrary, it was making industries such as the Paints industry, the Tyre manufacturing companies, and Consumer goods companies reduce their raw material cost. Thus, the production cut of Crude oil, as announced by US President Donald Trump, which boosted the US stock markets the previous day, had, in fact upset the Indian stock market.
Now, with the Dalal Street remaining closed for three consecutive days, Indian investors would have much clarity when it reopens on Tuesday. Investors would carefully follow the other Asian markets and would also be hoping for a fightback against the Coronavirus pandemic.