Oct 27 (Reuters) - Asian stocks markets fell on Tuesday as
soaring global coronavirus cases and slow progress on a U.S.
stimulus deal hammered investor sentiment and took a toll on
MSCI's gauge of Asia Pacific stocks outside Japan
was down 0.43%, with Australia's ASX 200
off 1.1% to an almost three-week low.
China's CSI300 Index edged down 0.1%, as investors
looked out for any news from a meeting of China's Communist
Party leaders to set the next five-year plan.
Data out earlier in the day also showed China's industrial
profits grew at a slower pace in September, suggesting a
recovery in the manufacturing sector is yet to be bedded-in.
In Japan, the benchmark Nikkei 225 dropped 0.28% in
morning trade while Hong Kong's Hang Seng index was down
U.S. indices fell sharply overnight to open the week's
trading, as anxiety over new record daily COVID-19 cases in the
United States, Russia and France weighed on investor appetite.
Adding to the gloom, White House economic adviser Larry
Kudlow told reporters on Monday that talks over a coronavirus
relief package have slowed, though House Speaker Nancy Pelosi
remained hopeful an agreement can be reached before the Nov. 3
Many Senate Republicans have resisted legislation of a scope
that Pelosi and Mnuchin have discussed, totaling around $2
"The challenge for markets is that in most cases they are
already pricing a very strong economic bounce. The new
outbreaks, and the potential for a double-dip recession,
directly contradict this assumption," Michael McCarthy, chief
market strategist at CMC Markets in Sydney.
National polls give Democrat Joe Biden a solid lead over
president Donald Trump but the contest is much tighter in
battleground states that could decide the outcome.
The sharp stock market decline set a bleak tone ahead of a
busy third-quarter earnings season, with large U.S. tech firms
like Apple Inc, Amazon.com Inc and
Google-parent Alphabet Inc set to report. Microsoft
Corp reports its results Tuesday.
The Dow Jones Industrial Average fell 2.29%
overnight, the S&P 500 lost 1.86%, while the Nasdaq
Composite dropped 1.64%.
The dollar was holding largely steady, moving just a
touch lower to trade at 92.951 against a basket of six major
Much of the trading in currency markets, as well as other
asset markets, was buffeted by the renewed coronavirus fears.
In early Asia, oil prices managed to staunch an extended
sell-off though the outlook was weak due to the virus-induced
worries over demand. Brent crude was up 12 cents, or
0.3%, at $40.58 a barrel by 0039 GMT, having dropped more than
3% overnight. U.S. oil was up 13 cents, or 03%, at $38.69
a barrel, after also declining more than 3% on Monday.
The safe-haven Spot gold added 0.3% to $1,907.41 an
ounce Tuesday morning.
(Reporting by Kane Wu in Hong Kong and Pete Schroeder in New
York; editing by Richard Pullin & Shri Navaratnam)