The recurrence of coronavirus cases pushed Asia-Pacific indices lower on Tuesday.
Following an increase in instances, many countries impose new restrictions, jeopardizing economic recovery.
The WTO acknowledges that Beijing and Canberra are at odds over a trade dispute.
For the second session in a row, Asian stocks have fallen. On fears of a new coronavirus outbreak in the region, investors remain negative and avoid riskier assets.
As banking equities fell, Wall Street reached a new high thanks to increases in technology stocks.
Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks fell 0.11 percent, remaining near recent highs.
The Shanghai Composite Index dropped 0.9 percent as tensions between China and Australia, the region’s two largest trading partners, grew. On Monday, the World Trade Organization (WTO) acknowledged that Australia had lodged a formal complaint regarding China’s wine import tariffs.
The Kospi fell 0.5 percent, the S&P ASX200 down 0.5 percent, and the Hang Seng in Hong Kong fell 1%.
The Nikkei 225 index in Japan fell 0.1 percent as domestic statistics revealed that the jobless rate jumped to 3% in May, the highest level since December 2020.
S&P 500 Futures were trading at 4,290, up 0.23 percent on the day.
Despite Fed officials’ conflicting reactions to the outlook for inflation and interest rates, the US currency remains strong. The possibility of a bipartisan infrastructure plan adds to the greenback’s appeal.
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