Asia shares drop on jitters over virus, China-US friction

TOKYO (AP) — Shares fell in Asia on Tuesday as skepticism set in about the recent upward momentum in global markets given rising confirmed coronavirus cases and percolating tensions between the U.S. and China.

The White House’s decision to reject nearly all Chinese maritime claims in the South China Sea added to investor jitters. The world’s two largest economies have been sparring over everything from the pandemic to human rights.

Japan's benchmark Nikkei 225 sank 0.9% to finish at 22,587.01. South Korea's Kospi lost 0.2% to 2,180.88, while Australia's S&P/ASX 200 dropped 0.6% to 5,941.10.

Hong Kong's Hang Seng tumbled 1.3% to 25,447.67 as reports of locally transmitted coronavirus cases prompted authorities to tighten precautions against the pandemic. The Shanghai Composite lost 0.9% to 3,412.84.

One indicator of how bad the regional damage could get came from the advance estimate of Singapore’s gross domestic product, or GDP, for the second quarter. It showed a 12.6% year-on-year contraction, confirming Singapore’s worst recession ever.

“It is also the weakest result among our estimates for most Asian economies,” said Prakash Sakpal, a senior economist at ING, noting that the number was dismal, even though "Singapore wasn’t as badly affected by the COVID-19 pandemic as some of its Asian neighbors.”

Wall Street is getting a painful reminder of the threat the pandemic poses to the economy, as reopenings bring on fresh spikes in coronavirus cases.

The S&P 500 fell 0.9%, with all the losses accumulating in the last hour of trading after California said it will extend closures of bars and indoor dining across the state, among other restrictions. It’s one of many states across the U.S. West and South where coronavirus counts are accelerating...