Asia Stocks Continue to Slip as a Concern over Oil Prices Collapse for Second Day

Stocks in Asia Pacific markets plunged in the morning session on Wednesday, April 22, 2020, as investors still under the worrisome about oil prices collapse for second day, which resulted by the coronavirus pandemic that has affected on global economic demand.

 

As of 10:02 local time in Thailand (GMT+7), Nikkei fell 1.20%, SSEC dropped 0.09%, ASX 200 dipped 0.53%, HSI plunged 0.68% and Kospi decreased 1.07%.

 

Meanwhile, Dow Jones Futures also pointed to lose than 631 points or 2.67% to 23,018.88 points. S&P 500 Futures fell 3.07% and Nasdaq Futures dropped 3.48%.

 

Earlier this week, the May U.S. WTI futures contract plummeted to trade in negative territory for the first time in history. In addition to the demand in crude oil continued to plunge as people around the world decided to stay home to prevent the spread of coronavirus, especially in the U.S., leading to oversupply concerns.

 

While the June contract for West Texas Intermediate (WTI) rebounded some on Tuesday as it surged 11.32% to $12.88 per barrel, after falling more than 40% on Tuesday. 

 

The concern over U.S. crude price has overshadowed a positive factor from the report of the U.S. Senate has unanimously passed a draft measure of $484 billion to help small businesses and hospitals which affected by the covid-19 spreading.