HSI Falls Sharply As New Virus Cases Spook Investors

Hong Kong shares finished Tuesday morning sharply lower as traders fret over a pick-up in infections on the mainland and in Seoul that fuelled fears of a second wave of coronavirus.

The Hang Seng Index fell 1.8 percent, to 24,163 by the break.

On the mainland, the Shanghai Composite Index fell 0.6 percent, to 2,877, while the Shenzhen Composite Index lost 0.7 percent, to 1,792.

Tokyo went into the break 0.2 percent lower, HSydney, Singapore, Seoul and Taipei fell more than 1 percent.

Manila and Jakarta also fell, though Wellington edged up slightly.

"Indications abound that increased mobility will lead to re-occurrences of the virus, which will change the slope of the recovery," said AxiCorp's Stephen Innes, noting that news reports had generally emphasised the negative elements of reopening.

"While markets may eventually desensitise to mini-cluster outbreaks, provided death statistics remain static... at this stage, it does not lessen fears of a significant secondary spreader, which will undoubtedly weigh on consumer sentiment and hurt the rebound."

Oil prices edged up, taking some joy from news that Saudi Arabia would slash an extra million barrels per day from its June output, leaving it with just short of 7.5 million, which ANZ said would be the lowest since 2002. (AFP)

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