Asia Stocks Trade Lower as 2nd Wave of Coronavirus Outbreak Hits China and S.Korea

Stocks in Asia plunged in the morning session on May 14, 2020, after the concerns of the second wave of the coronavirus outbreak, while the Federal Reserve Chairman Jerome Powell said yesterday that policy makers might need more tools to buoy the U.S. economy, damaged by the coronavirus outbreak.

 

As of 9:10 local time in Thailand, Nikkei fell 0.66%, SSEC dipped 0.54%, HSI dropped 1.22%, ASX 200 plunged 1.02% and Kospi lost 1.08%.

Over the night, Dow Jones shed 2.17%, S&P 500 sank 1.75% and Nasdaq lost 1.55%. Powell said the current situation caused by the coronavirus outbreak is unlike previous recessions the U.S. has endured, while pointing that the Congress should take responsibility more than the Fed. However, he asserted that the policy rate will not drop below zero.

After the reopening economy, investors started to concern over the second wave of the coronavirus outbreak as China reported more new cases while South Korea announced a new high in a month.

 

Yesterday, SET was unable to rise above its resistance level at 1,300 points and dropped 5.14 points or 0.40% to 1,294.55 points with a trading value of 62.2 billion baht.