Asian shares drop on weak oil prices
Asian shares and U.S. stock futures recorded a frail performance on Tuesday, erasing previous earnings as oil prices declined sharply. The weak trading activity monitored in oil prices dampened investors’ sentiment regarding pandemic-related policies implemented worldwide.
MSCI’s broadest index of Asia-Pacific shares outside Japan declined by 0.3%. Chinese shares .CSI300 dropped with a 0.7% loss while South Korean shares edged down with 0.22%.
Oil futures slumped deeper after the biggest U.S. oil exchange-traded fund decided to sell all its front-month crude contracts. The scheme is set to negate further drawbacks amid contracting oil prices.
Some investors believe that the world economy may recuperate soon as more countries re-open businesses. However, others remain cautious as the cure for the deadly respiratory disease has yet to be developed.