Asia Stocks Plunge as Fed Expresses Concerns over the Prolong Impact of Virus Outbreak

Stocks in Asia traded lower on Thursday morning as Fed’s minute release showed that the ongoing situation surrounding the coronavirus pandemic could weigh heavily on the economy.

 

Nikkei fell 0.76%, SSEC dropped 0.85%, HSI plunged 1.81%, ASX 200 dipped 1.01% and Kospi lost 2.43%.

 

The Federal Open Market Committee (FOMC) members on August 19, 2020, expressed concerns over the economy affected by the ongoing coronavirus outbreak since March and would weigh heavily on economic activity, employment, and inflation in the near term and was posing considerable risks to the economic outlook over the medium term.

Fed’s Chairman Jerome Powell reiterated the consensus of the meeting, saying that the U.S. economy needs more fiscal help from Congress, which was now unable to pass due to what people called a “petty political”

 

As for Thailand, the Thai stock market declined sharply yesterday over a report of a possible domestic coronavirus contraction on a man who showed symptoms after coming out of a 14-day quarantine.