Chinese stocks continued to strengthen their positions for several days in a row. However, mainland Chinese stocks fell on Friday. Moreover, stocks dropped across the Asia Pacific as investors analyzed the situation regarding the growing number of coronavirus cases around the globe.
Let’s have a look at the mainland Chinese stocks. The Shanghai Composite dropped 1.95% to 3,383.32. Also, the Shenzhen Composite fell 0.3% to 2,251. Furthermore, the Shenzhen Component dropped 0.61% to end its trading day at 13,671.24.
Australia’s benchmark ASX 200 fell 0.61% to 5,919.20. Notably, the heavily-weighted financials subindex decreased by 0.72% while the energy subindex fell 1.98%.
Japanese stocks also struggled on Friday. The Nikkei 225 dropped 1.06% to 22,290.81. At the same time, the Topix index declined 1.42% to 1,535.20.
Also, South Korea’s Kospi index fell 0.81% at 2,150.25.
Stocks and coronavirus pandemic
Hong Kong’s Hang Seng index dropped 2.26% in late-afternoon trade. Importantly, the city decided to suspend all schools starting from Monday, due to a recent spike in coronavirus cases. On Friday, Hong Kong’s Education Bureau announced the suspension of all schools.
As a reminder, for the last several months, schools in Hong Kong have been mostly shut as the government is trying to contain the virus. Moreover, many international schools are already on summer break.
Importantly, the city reported 42 new cases on July 9. Out of 42 cases, 34 cases were locally transmitted.
Unfortunately, infection rates rose across the country with California and Florida among 12 states hitting record-breaking, seven-day averages for daily new cases. The country has the highest number of cases in the world.
The coronavirus pandemic continues to affect stocks. It is not surprising as the pandemic is far from being over, as the number of cases continues to rise in many countries across the world. Private as well as governmental organizations should work together to support the global economy.