A Modells store in New York, as US retail sales suffer a record drop in March. Picture: BRYAN R SMITH/REUTERS/Bryan R Smith
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6%. In Japan, where a Reuters survey showed most firms feel stimulus measures announced so far are insufficient, the Nikkei fell 1.3%. Benchmark indicees in Australia, Korea, Hong Kong and Shanghai also posted falls between 0.3% and 1.5%. China is expected to report on Friday that the health crisis is likely to have knocked its economy into its first decline on record.
The grim outlook was further underscored by warnings from major US banks Goldman Sachs and Citigroup of future loan losses as they each posted a drop in profits. Adding to traders’ worries, the dire economic news also came with sharp rises in Covid-19 fatalities. The US is the world’s worst-affected country and its coronavirus death toll topped 30,000 on Wednesday. The fatalities have doubled in a week and set a record single-day increase for the second day in a row.