Stocks in Asia-Pacific set to open lower after Dow sees worst drop since October

  • The Dow Jones Industrial Average fell more than 700 points overnight on Wall Street as fears over a Covid resurgence weighed on investor sentiment.
  • China is set to announce its latest benchmark lending rate on Tuesday. Majority of traders and analysts in a snap poll expect no change to both the one-year Loan Prime Rate (LPR) or five-year LPR, according to Reuters.
  • Markets in Indonesia, Malaysia and Singapore are closed on Tuesday for holidays.

SINGAPORE — Shares in Asia-Pacific looked set to open lower on Tuesday following an overnight tumble for stocks on Wall Street that saw the Dow Jones Industrial Average plunging more than 700 points.

Futures pointed to a lower open for Japanese stocks. The Nikkei futures contract in Chicago was at 27,355 while its counterpart in Osaka was at 27,270. That compared against the Nikkei 225's last close at 27,652.74.

Australian stocks also looked poised for opening declines. The SPI futures contract was at 7,129, against the S&P/ASX 200's last close at 7,286.

China is set to announce its latest benchmark lending rate later on Tuesday. Majority of traders and analysts in a snap poll expect no change to both the one-year Loan Prime Rate (LPR) or five-year LPR, according to Reuters.

Markets in Indonesia, Malaysia and Singapore are closed on Tuesday for holidays.

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Wall Street drop

Overnight stateside, the Dow Jones Industrial Average plunged 725.81 points to 33,962.04 while the S&P 500 slipped 1.59% to 4,258.49. The Nasdaq Composite fell 1.06% to 14,274.98.

The losses on Wall Street came as concerns grew over the potential impact of a Covid resurgence on the global economic recovery. Several countries in Southeast Asia have been battling a resurgence in infections, and Goldman Sachs recently slashed its 2021 growth forecasts for most of the region.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.891 after a recent bounce from below 92.8.

The Japanese yen traded at 109.54 per dollar, stronger than levels above 110.5 seen against the greenback last week. The Australian dollar changed hands at $0.7339, off levels around $0.738 seen yesterday.

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