Asian shares mixed amid dismal earnings, Wall Street slump
TOKYO (AP) — Asian shares were mixed Wednesday as reports of dismal company earnings add to pessimism over the widespread economic fallout from the coronavirus pandemic.
Tokyo's Nikkei 225 index lost 1.2% to 22,397.11 after Fitch Ratings downgraded its outlook for Japan to “negative” from “stable.”
“The coronavirus pandemic has caused a sharp economic contraction in Japan, despite the country’s early success in containing the virus,” Fitch said in announcing its decision.
Japanese automaker Nissan Motor Co. reported a loss for the fiscal first quarter and projected to remain in the red for the second year straight. Other big-name Japanese companies such as camera company Canon and robot manufacturer Fanuc also reported weak results.
Earnings reports overnight also discouraged investors, pulling shares lower on Wall Street. Market players are awaiting the outcome of a U.S. Federal Reserve policy meeting that began Tuesday. Gold prices moderated their steep climb, adding $8.60 to 1,953.20.
The pandemic is the primary concern, as secondary outbreaks raise the likelihood of further lockdowns to curb a resurgence in countries that had thought to have the virus under control, said Jeffrey Halley of Oanda.
“An escalation followed by the renewal of severe movement restrictions could see the much-feared secondary wave double-dip recession occur. That has not been priced into markets remotely unless you are talking about precious metals. But as yet, we are not at the double-dip stage," Halley said in a commentary.
Elsewhere in Asia, South Korea's Kospi added 0.4% to 2,265.46. Australia's S&P/ASX 200 slipped 0.2% to 6,006.40. Hong Kong's Hang Seng climbed 0.5% to 24,7894.10, while the Shanghai Composite index jumped 1.8% to 3,284.41 as buying kicked in...
