In Japan and India, investors are becoming more concerned about the prospects for a strong post-pandemic recovery. (Source photos by Kyodo and Getty Images)

Japan and India stock markets feel pain from COVID surge

Asian equities underperform as rising caseloads slow region's economic rebound

JADA NAGUMO and NARAYANAN SOMASUNDARAM, Nikkei staff writers

April 26, 2021 04:51 JST

TOKYO/HONG KONG -- Investors in Asia, led by Japan and India, are reacting with concern to a surge in coronavirus cases in many parts of the region as new lockdown measures threaten corporate earnings and economic recovery.

Asia looked likely to escape the worst consequences of the pandemic, with strict lockdowns helping to stem COVID transmission. Investors had identified the region as a good bet for recovery, helping stock markets to climb.