SINGAPORE — Shares in Asia-Pacific fell in morning trade on Thursday following an overnight plunge on Wall Street as coronavirus cases continue to surge in the West.

The sustained increase in coronavirus cases seen in the U.S. as well as across Europe likely weighed on investor sentiment in Asia-Pacific on Thursday.

Shares in South Korea led losses among the region’s major markets, as the Kospi fell 1.55%. Shares of industry heavyweight Samsung Electronics declined more than 1% after the firm on Thursday predicted a fourth-quarter decline in profits.

In Hong Kong, the Hang Seng index fell 1.37% as shares of life insurer AIA dropped about 2%. Mainland Chinese stocks were also lower, with the Shanghai composite 0.7% lower while the Shenzhen component shed 0.313%.

Meanwhile, Australia’s S&P/ASX 200 dropped 1.35%

Over in Japan, the Nikkei 225 declined 0.74% while the Topix index shed 0.54%. Shares of Sony, however, surged more than 6% after the firm raised its annual profit outlook.

Japan’s retail sales fell 8.7% in September as compared to a year earlier, according to the Ministry of Economy, Trade and Industry’s Preliminary Report on the Current Survey of Commerce released Thursday. That compared against a median market forecast for a 7.7% decline, according to Reuters.

Following the data release, the Japanese yen traded at 104.37 per dollar, having strengthened from levels above 104.8 against the greenback earlier this week.

The Bank of Japan is also set to announce its interest rate decision and release its outlook report on Thursday.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.97% lower.

Markets stateside had a sharp selloff overnight. The Dow Jones Industrial Average dropped 943.24 points, or 3.4%, to close at 26,519.95 — its fourth straight negative session. The S&P 500 slipped 3.5% to end its trading day at 3,271.03 while the Nasdaq Composite fell 3.7% to close at 11,004.87.

Tuesday was the third consecutive day the U.S. set a record high of average daily Covid-19 cases. In Europe, Germany and France announced tough new restrictions on businesses Wednesday in a bid to stem the spread of the coronavirus as the countries deal with worsening outbreaks.

“The inability to control the “second wave” outbreak resulting in re-imposition of tighter social restrictions in Europe (led by Germany and France) is leading to grave concerns that the US and UK, with its similar pattern of resurgence, will have to follow suit,” Vishnu Varathan, head of economics and strategy at Mizuho Bank, wrote in a note.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.432 after touching an earlier high of 93.463.

The Australian dollar changed hands at $0.7061 after yesterday’s sharp drop from above $0.712.

Oil prices were higher in the morning of Asian trading hours, with international benchmark Brent crude futures up about 0.4% to $39.28 per barrel while U.S. crude futures added 0.56% to $37.60 per barrel.

What’s on tap:

• Japan: Bank of Japan’s interest rate decision and quarterly outlook report