On April 21, shares of index heavyweights Fast Retailing and Softbank fell more than 3%. In the case of Fast Retailing, its shares fell 3.74%, while the shares of Softbank dropped 4.11%. In Japan, the Nikkei 225 dropped 1.97% to close at 19,280.78 as the shares of index heavyweights decreased on Tuesday. Moreover, the Topix index decreased by 1.15% to end its trading day at 1,415.89. It is worth mentioning that stocks in Asia fell on Tuesday due to the problems connected with oil prices. As a reminder, the May contract for the U.S. crude reentered negative territory.
Mainland Chinese stocks also suffered losses on April 21. For example, the Shanghai Composite fell 0.9% to about 2,827.01. Meanwhile, the Shenzhen composite dropped 0.817% to approximately 1,753.42.
Furthermore, Australia’s S&P/ASX 200 plunged 2.46% to 5,221.30.
Moreover, South Korea’s Kospi index fell 1% to close at 1,879.38. At the same time, the Kosdaq index decreased by 1.42% to finish its trading day at 628.77. Interestingly, Kwon also weakened against the U.S. dollar as it traded at 1,229.65 per dollar.
Various factors and shares
There is no shortage of factors that may affect the shares of various companies. For example, on Tuesday, Virgin Australia announced that it entered voluntary administration to stabilize the situation. It is not surprising that companies even larges companies are struggling to cope with the economic impact of the coronavirus pandemic. Authorities around the world imposed restrictions to contain the virus’ spread.
Also, in the afternoon of Asian trading hours on Tuesday, the price of the May WTI contract reentered the negative territory at negative $4.29 per barrel. Moreover, international benchmark Brent crude futures dropped 7.27% to $23.71 per barrel.
Unfortunately, the coronavirus pandemic reached most of the countries in the world. Companies lost billions of dollars and it won’t be easy to convince the investors that everything is under control.