Asia-Pacific Stock Exchanges (APX) were mostly down Friday morning. The major stock indexes show negative dynamics due to growing concerns about the uncontrolled increase in the growth of coronavirus infection in the world and in certain countries where the situation is particularly difficult. Investors are afraid of the possible introduction of a strict quarantine, which can seriously affect the economic development of regions in general and individual sectors of the economy in particular. In any case, restrictions have already put significant pressure on the economic development of countries, slowing down all the main processes of growth and recovery from the crisis that occurred after the first wave of the COVID-19 pandemic.
New anti-records has rattled markets and quickly sobered them after not too justified hopes for the release of the vaccine in the near future. This is due to a number of reasons, the appearance of a drug even in the current year for general use is almost impossible. In this regard, the hype on the news of its successful clinical trials was absolutely unjustified, and the growth that occurred against this background sooner or later had to come to naught.
Japan's Nikkei 225 Index sank 0.65%. However, it is worth noting that over the past week it has made great progress, even being able to reach its maximum indicators for the last more than twenty-nine years.
China's Shanghai Composite index parted immediately by 1.4%. The Hong Kong Hang Seng index supported the negative trend and became lower by 0.6%. Significant pressure on the Chinese markets was exerted by the decree of the current US President Donald Trump, banning purchases from American individuals and legal entities of securities of Chinese companies operating in the military sphere. However, the most important thing has not yet been done: a specific list of such companies is not available to the general public.
The Australian S&P/ASX 200 index fell 0.2% on Friday morning. At the same time, it should be noted that during the whole week it demonstrated good positive dynamics, which allowed it to increase a total of 3.5%. Therefore, Friday's fall can be considered an inevitable correction.
South Korea's KOSPI Index rose 0.6% and became the only regional indicator that went against the negative trend.
Meanwhile, growth has been noted on European stock exchanges on Friday, which does not stop, even despite grave concerns on the rapid increase in the number of COVID-19 cases in the region.
The incidence rate of COVID-19 is only increasing, and daily infection and mortality rates continue to break records almost every day.
The governments of the countries are beginning to discuss the possibility of strengthening the already tough quarantine measures introduced on the territory of individual states. In particular, the Italian authorities are discussing the issue of introducing a nationwide self-isolation regime. If the situation in Italy does not show signs of any improvement, the government will be forced to take this last resort. In the meantime, self-isolation operates in some particularly affected areas of the country.
The authorities in France have already decided to extend the travel restrictions by at least two weeks. The stabilization that has been achieved recently may come to naught if the country lifts the lockdown at present.
Germany and the UK also registered new anti-records. The daily new cases in Germany already increased to 23,500, while the UK records almost 33,500 new cases per day. All these promises absolutely nothing good.
Nevertheless, the epidemiological situation is not yet reflected in the movement of the major stock indexes, which over the current week were able to reach their maximum values over the past eight months.
The general index of large enterprises in the European region STOXX Europe 600 gained 0.17% and began to consolidate at around 385.82 points.
The German DAX Index added 0.3%. France's CAC 40 Index jumped 0.48%. Italy's FTSE MIB Index added 0.45%. Spain's IBEX 35 Index was up 0.9% which took the lead in the growth. The UK FTSE 100 Index sank 0.04%, which was the only negative on Friday.
