Asian Stock Market: Attempts a recovery amid an uptick in S&P 500 futures

Markets remain fearful of the impending risks of the ongoing spike in Delta coronavirus strain globally that has ensued lockdown restrictions once again. Further, concerns over a pre-mature monetary policy normalization by the Fed amid rising inflation add to the downbeat tone across Asia so far this Tuesday.

The Asian equity market remains in the red, tracking the rout in Wall Street overnight, with Dow Jones down 900 points at one point and S&P 500 index finishing nearly 1.60% lower at 4,259.

However, the losses remain capped in the Asian indices, as markets seem to stabilize, finding some relief from the renewed US stimulus optimism. Senate Majority Leader Chuck Schumer said, “Procedural vote on infrastructure bill will take place on Wednesday.

An uptick in the US S&P 500 futures also helps calm some nerves. The risk barometer rebounded from monthly lows to now trade near 4,260, up 0.26% on the day.

Amongst the regional indices, the Japanese Nikkei 225 index hit a six-month low of 27,315 before recovering to 27,457, at the press time. The index is still down 0.62% on the day. Australia’s ASX 200 is losing 0.42% to challenge 7,250, as Victoria extends lockdown until July 27 amid rising covid cases. China’s A50 and Shanghai Composite index are down nearly 0.50% so far.