Asian Stock Market: Falls for second day on Delta virus variant fears

• Asia-pacific indices extended losses on Tuesday on the resurgence of coronavirus cases.
• Many countries impose fresh lockdown after rising cases, posing a threat to economic recovery.
• Beijing and Canberra at loggerheads on trade dispute, WTO confirms.

Asian stocks edge lower consecutively for the second session. Investors remain pessimistic and avoid riskier assets on concerns of a fresh coronavirus outbreak in the region.

Wall Street hit a new high on tech stock gains as financial stocks dipped.

MSCI’s broadest index of Asia-pacific shares outside Japan lost 0.11% while hovering near recent highs. 

The Shanghai Composite Index fell 0.9% as tension escalates between China and Australia, the two biggest trade partners in the region. The WTO confirmed on Monday that Australia had filed a formal complaint about China’s import duties on its wine imports.

Kospi shed 0.5%, S&P ASX200 lost 0.5%, and Hong Kongs’ Hang Seng lost 1%.

Japan’s Nikkei 225 sank 0.1% after the domestic data showed that the unemployment rate rose 3% in May, the highest reading since December 2020.

It is worth noting that S&P 500 Futures were trading at 4,290, up 0.23% for the day.

The US dollar remains elevated despite mixed Fed officials' mixed reaction on inflation and interest rates outlook. A possible bipartisan infrastructure plan adds attractions to the greenback.