“The rebound of the infection rate, especially in the US, shows that the road to full recovery is going to be long and that it will require medical solutions, such as a vaccine,” Tai Hui, chief Asia market strategist for JP Morgan Asset Management wrote in a Monday note.
The situation in the United States could also prompt concerns in Europe, as European governments are considering opening borders more during the summer holiday season, he added.
“We expect market sentiment to turn cautious in the near term, with investors hedging risks from the pandemic and ongoing tensions between the US and China,” Hui said.
In oil trading, US crude futures fell 2% to trade at $37.74 per barrel during Asian hours on Monday. Brent, the world oil benchmark, lost 1.7% to trade at $40.23 per barrel.