Asian Shares, Oil fall as growing COVID-19 infections revive economic concerns

On the first day of the business week, Asian shares and Wall Street futures fell as growing fears of a second wave of the novel coronavirus infections revived economic concerns.

The risk-off sentiment is also likely to weigh on global markets, with e-Minis for the S&P 500 extending losses in Asia to be down 2.7% at 0633 GMT, from 1% earlier.

European markets were also set to open lower with pan-region EuroSTOXX 50 futures and German DAX futures each dropping 2.5% and FTSE futures falling 2%.

Stocks Experts said “Any new outbreak will be looked at very, very cautiously by investors. The market is putting into perspective that the COVID-19 issue has not been resolved yet. It’s a reality check,”

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 2.3%, extending its losses from 0.3% earlier in the day, with Australian shares off 2.2% and South Korea falling 4.8%.

Japan’s Nikkei also extended losses to 3.5%. Chinese shares joined the sell-off with the blue-chip CSI300 index down nearly 1%.

The Chinese yuan extended losses in offshore trade after the data to be last at 7.0883 per dollar.

Oil fell more than 3% that extended losses from last week, on worries renewed outbreaks of the coronavirus could weigh on the recovery of fuel demand.

Brent crude futures fell 3.5%, to $37.39 a barrel by 0612 GMT, while U.S. West Texas Intermediate crude futures were down 4.9%, to $34.49 a barrel.

Oil investors await OPEC+ committee meetings of experts later this week who will advise the producer group and its allies on output cuts.