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Asian markets fall and Dow futures drop as US Congress fails to move forward on coronavirus bill

by scceu0521

Dow (INDU) futures fell more than 900 points earlier in the morning, hitting a 5% decline that triggered a maximum allowable limit, or “limit down.” That halted futures from falling further. They were last down around 760 points, or 4%.
S&P 500 (SPX) and Nasdaq (COMP) futures also fell around 5%, and were last down 3.8% and 3.1%, respectively.

Senate Democrats blocked movement on an economic stimulus package, citing ‘serious issues’ with the bill. That injected fresh uncertainty over whether and when lawmakers will reach a bipartisan deal to deliver relief amid the pandemic.

In Asia Pacific, Australia’s S&P/ASX 200 plunged as much as 8.6% Monday, before clawing back some losses. It was last down 5.6%. South Korea’s Kospi (KOSPI) dropped 3.4%. Hong Kong’s Hang Seng Index (HSI) fell 3.8% while China’s Shanghai Composite (SHCOMP) lost 1.6%.
Japan’s Nikkei 225 (N225) was the outlier, last trading up 2.2%. The International Olympic Committee’s executive board said Sunday it is considering postponing — but not canceling — this summer’s Olympic Games in Tokyo because of the pandemic.

There is pressure to take action: Canada said it won’t be sending teams to the Olympics this summer, and asked for the games to be postponed by one year.

The US dollar, meanwhile, pulled higher against some Asian currencies. It jumped 2.7% against the Korean won and was up 0.4% against the Australian dollar. It also climbed more than 1% versus the New Zealand dollar.

The greenback fell slightly against the Japanese yen, a traditional safe-haven currency.

US oil prices rebounded a little following a nearly 30% plunge last week. WTI crude futures were up 1.5% to trade at $22.76 a barrel.

Central banks and governments around the world last week announced a wave of stimulus measures aimed at bolstering economies and calming harried financial markets.
But the virus has continued to spread rapidly around the world — there are now more than 325,000 cases worldwide — forcing further travel restrictions, shut downs and disruptions for businesses, and threatening the global economy.

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