Asian shares slide as virus casts shadow over recovery

BANGKOK (AP) — Shares skidded in Asia on Wednesday after Wall Street closed lower for a second straight day, led by drops in technology companies and banks.

Worsening coronavirus outbreaks in Asia have cast a shadow over prospects for a rebound from the pandemic. Tokyo’s Nikkei 225 fell more than 2% and other benchmarks also declined.

On Tuesday, the S&P 500 gave back 0.7%, pulling the index further below the record high it set on Friday. Small-company stocks, which have been beating the rest of the market in recent months, fell more than other sectors.

Asian governments are scrambling to secure supplies of COVID-19 vaccines after seeing infection numbers surge in recent weeks. The rising caseloads are straining medical systems from Japan to India and leading to a restoration of pandemic precautions such as travel restrictions, quarantine requirements and a dimming of nightlife.

The Nikkei 225 in Tokyo gave up just over 2.0% to 28,508.55 while Hong Kong's Hang Seng declined 1.7% to 28,655.76. In Seoul, the Kospi lost 1.5% to 3,171.66, while Sydney's S&P/ASX 200 shed 0.3% to 6,997.50. The Shanghai Composite index ended flat at 3,472.93.

“Global stocks are still plumbing the lows after renewed virus concerns spooked markets overnight," Stephen Innes of Axi said in a commentary.

Worsening outbreaks in India and Thailand have also cast a pall on a recovery in travel, which in turn is clouding the outlook for oil and fuel prices, he said.

On Wednesday the S&P 500 closed at 4,134.94. The Dow Jones Industrial Average lost 0.8% to 33,821.30. After shedding an early gain, the technology-heavy Nasdaq slid 0.9%, to 13,786.27.

Apple fell 1.3% as part of a broad slide in technology companies. Banks also accounted for a big share of the selling, which came as...