Stock markets were volatile on Tuesday in Asia while U.S. futures rebounded after historical declines. It seems the worldwide upheaval caused by the coronavirus pandemic will continue to rattle investors for the foreseeable future.
However, Dow Jones futures gained 3.5% after the index recorded its worst one-day point drop. S&P 500 futures also rose by 3.7% after it closed down by 12% in New York yesterday. Nasdaq wasn’t far with a 3.4% increase after a double-digit plunge on Monday.
The overnight rally does not mean that markets are truly rebounding – noted Jeffrey Halley, senior market analyst for the Asia Pacific at Oanda. According to him, it looks very much like a bear market bounce, not the coming of the dawn.
What about Asian Futures?
Asian stocks were fluctuating throughout trading on Tuesday, with many major indexes struggling to gain traction. Hong Kong’s Hang Seng Index was flat in afternoon trade. The city declared on Tuesday that it would require all arriving travelers from foreign countries to be quarantined indoors for two weeks as there were several imported cases of the virus.
Japan’s Nikkei 225 also ended the day flat after swinging between significant losses and gains earlier. However, China’s Shanghai Composite lowered by 0.4%.
South Korea’s Kospi suffered the most severe losses, closing down by almost 2.5%. Australia’s S&P/ASX 200 fell by nearly 10% on Monday, but the stock managed to gain 3.4% on Tuesday after its worst day on record.
All the major stocks, such as the Nikkei, Hang Seng, Kospi, and Australia’s S&P/ASX 200, fell into a bear market last week. While the major indexes in mainland China have avoided the following suit thus far, they have still recorded declines.
The Shanghai Composite declined almost by 15% from its recent high. The Shenzhen Composite and Shenzhen Component indexes, meanwhile, are down 12% and 14%, respectively, from their recent peaks.
