Asian shares mix, European stocks fall as new coronavirus strain spreads

Gulf Today Report

Asian shares mixed on Monday as coronavirus cases surge outweighing the positive news of US stimulus aid.

In Japan and Hong Kong markets recorded a decline but it rose in South Korea and Shanghai. 

According to Jingyi Pan of IG, investors are already factoring expectations for the fresh stimulus. 

"The tentative accord on the approximate $900 billion coronavirus stimulus deal, having been the talk of the town for weeks, brought forth little fresh enthusiasm for markets," Pan said. 

Tokyo's Nikkei 225 index lost 0.2% to 26,714.42 while in Hong Kong the Hang Seng declined 0.2% to 26,432.20. Australia's S&P/ASX 200 shed 0.1% to 6,669.90. 

India’s Sensex was flat at 46,948.48. 

South Korea's Kospi recovered from early losses, gaining 0.2% to 2,778.65. The Shanghai Composite index gained 0.6% to 3,414.72. 

Thailand's benchmark SET index lost 3.1% as the country records coronavirus outbreak in a seafood market near Bangkok. 

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European stock 

European stocks fell on Monday as Britain detects new strain of coronavirus that is 70% transmissible. 

London's benchmark FTSE 100 index slid more than 1.0 per cent, while eurozone indices dived over 2.0 per cent -- with trade impacted also by Britain and the EU failing again to reach a post-Brexit trade deal.

A number of countries have placed a ban on flights from Britain as the new strain spirals “out of control.”

The new strain affected the sentiments of the investors despite US lawmakers agreeing on a nearly $900 billion Covid-19 aid

"Coming at a time when another Brexit deadline has been missed... it's no surprise to see sentiment taking a big hit."