Market Brief: Asian Stocks and ASX 200 Lower On Coronavirus Fears

Asian stocks started the week lower as the rising number of coronavirus cases threatens the global economic recovery. There are now over 500,000 coronavirus deaths worldwide. While in the USA, there are 2.5 million cases and 125,000 deaths. Southern U.S. states are experiencing a record number of coronavirus cases in the last week, and cancelling the reopening process.

Wall Street ended sharply lower on Friday, with Dow Jones giving up 2.84% at 25,015 and Nasdaq -2.59% lower at 9,757. Chesapeake Energy, the biggest US shale producer, declared bankruptcy during the weekend as the crude oil prices to historic low levels in April.

Crude oil price trading lower on Monday. WTI crude oil futures are 1.48% lower at 37.92 while the Brent crude oil is 0.42% lower at 40.51.
Nikkei ended 2.30% lower at 21,995. The Shanghai Composite index is 0.62% lower at 2,960. The Singapore Straits Times index is 1.05% lower at 2,576. Hang Seng is 1.30% lower at 24,233.

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ASX 200 Retreat On Second Coronavirus Wave Fears

ASX 200 gives up 1.18% at 5,834 as the buyer’s enthusiasm that drove the markets since the March lows run out of steam amid the rising numbers of new coronavirus cases in the USA. Australian Prime Minister Scott Morrison was optimistic on the reopening up of the borders in the country despite the rise in the coronavirus outbreak in the state of Victoria.

On the technical side, the first support for the ASX index will be met at 5,773 and 5,786 the daily low and the 100-day moving average. In case of a break lower than 5,773, sellers might test the next support area at 5,717 the low from June 16th trading session. The next support zone stands at 5,606 the low from May 26th. 

On the other side, the initial resistance stands at 5,904 the daily high. Next hurdle will be met at 5,966 the high from June 25th trading session. If the ASX 200 index breaks higher, then the next supply area stands at 6,153 the high from June 11th.  

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