The coronavirus pandemic and how to deal with it is the main challenge across the world. Authorities, researchers, healthcare professionals are working round the clock to create an effective vaccine. Stocks across Asia strengthened their position on Wednesday.
For example, South Korea’s Kospi index gained 1.76% to close at 1,928.76 as shares of automaker Hyundai Motor added 1.86%. Moreover, the Kosdaq index also rose 2.57% to end its trading day at 658.40.
Mainland Chinese stocks also saw gains on May 6. The Shanghai Composite added 0.63% to about 2,878.14. In the meantime, the Shenzhen Composite added 1.526% to around 1,790.28.
However, Australia’s S&P/ASX 200 dropped 0.42% to close at 5,384.60. According to the Bureau of Statistics, Australia’s retail sales in March rose by 8.5%. Interestingly, this result surpassed expectations.
Also, markets in Japan and Thailand were closed on Wednesday for holidays.
Stocks in Asia and oil prices
Numerous factors may affect the stocks and including the oil prices. For example, oil prices were lower in the afternoon of Asian trading hours after rising earlier on a day.
Moreover, international benchmark Brent crude futures fell 0.29% to $30.88 per barrel. Furthermore, U.S. crude futures also fell 1.06% to $24.30 per barrel.
However, oil prices soared on May 5 thanks to optimism regarding the ongoing production cuts. On Tuesday, the West Texas Intermediate, jumped 20.45% or $4.17 to reach $24.56 per barrel. Brent gained 13.86% to $30.97 per barrel.
Investors are closely monitoring the situation as some of the largest economies in the world are located in Asia. As a result, it will be hard to stabilize the situation without global effort. Moreover, it will take time to boost the economy after suffering big losses in the first quarter of 2020. Furthermore, people should not forget about coronavirus and its impact on the global economy.