Asian shares retreat today after some states in the U.S. cancel the reopening as the new coronavirus cases continue to rise. Arizona, Texas and California have shut down the restaurants, bars and cinema. Increasing tensions in relation to the South China Sea between China and the USA also weigh on risky assets. Investors will focus on second-quarter corporate earnings with expectations for a 45% drop in earnings during the coronavirus lockdown quarter.
Wall Street reversed the morning gains and turned sharply lower. Nasdaq finished 2.13% lower after earlier hit fresh record highs.
Nikkei 225 ended 0.87% lower at 22,587 after Japan Industrial Production came in at -8.9% below the forecast of -8.4% in May, the Capacity Utilization rebounded from previous -13.3% to -11.6%.
Trade data from China came better than expected. The China Exports came in at 0.5% topping the expectations of -1.5% in June, while the Imports came in at 2.7%, also above the forecasts of -10%.
The Shanghai Composite index is 0.83% lower at 3,414. The Singapore Straits Times index is 0.32% lower at 2,622. Hang Seng is 1.23% lower at 25,454.
ASX 200 Lower On COVID-19 Fears
ASX 200 finished 0.53% lower at 5,945 amid the rising coronavirus cases in the country. The border reopening in New South Wales has been called off, and the state has decided to cut pub bookings from 20 to 10 people while Queensland has closed its border to some New South Wales residents. On the economic data front, business confidence and business conditions have improved in June. Business Conditions came in at -7 above the expectations of -39. Business Confidence rise to 1 above the forecasts of -87 in June.
The initial support for the ASX 200 index will be met at 5,918 the daily low. In case of a move lower, sellers might test the next support area at 5,902 the low from July 10. Next support for the ASX 200 index is at 5,785 the 50-day moving average.
On the flip side, the initial resistance stands at 5,977 the daily high. Next hurdle for ASX index will be met at 6,071 the high from yesterday’s trading session. If the ASX 200 index breaks above, then the next supply zone stands at 6,238 the 200-day moving average.