Shares were mostly lower in Asia on Wednesday as uncertainty over the coronavirus pandemic sapped the buying enthusiasm that has been driving prices higher.
The selling followed a deeper pullback on Wall Street and in France, Germany and elsewhere after the European Union's executive arm said this year's recession caused by the pandemic will be deeper than forecast. It also said next year's expected rebound could be weaker than expected.
Wall Street's recent string of big gains came to an abrupt stop Tuesday as stocks closed broadly lower following a pullback in markets overseas. "It's not unusual for these five-day runs to be met with a bout of profit-taking, especially given the headlines on the virus," said Quincy Krosby, chief market strategist at Prudential Financial. "When you move toward overbought conditions it doesn't take much for the market to burn off some of the froth."
"The economic data that has come out over the past couple of months has actually beaten even the most optimistic economists, so in that scenario it's not surprising to see a euphoria-driven rally in the market," said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.
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