US coronavirus outbreaks weigh on global stocks

Europe's Stoxx 600 dropped 0.1% in early trading. Germany's DAX gained 0.2%, while France's CAC 40 slid 0.3% and the FTSE 100 dropped 0.2% in London.

Japan's Nikkei 225 declined 2.3%. South Korea's Kospi dropped 1.9%. Hong Kong's Hang Seng Index lost 1%, while China's Shanghai Composite shed 0.6% after trading for the first time since an extended holiday.

US stocks futures, meanwhile, were muted following sharp declines Friday. Dow futures inched up 45 points, or nearly 0.2%. Futures for the S&P 500 were up 0.1%, while Nasdaq futures were down 0.1%.

On Friday, the Dow tumbled more than 700 points as some states were forced to pause their reopening amid rising Covid-19 cases. Upticks have been reported in 36 states, including Florida, which some experts have cautioned could be the next epicenter for infections.

"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, where 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.

Facebook down again

Facebook shares could remain under pressure as a boycott of the company gains momentum. Some of the world's biggest advertisers, including Unilever and Coca Cola, have pulled ads from the platform citing its failure to address hate speech. Facebook shares dropped more than 8% on Friday, and were down another 2.4% in premarket trade on Monday.

In oil trading, US crude futures fell 1.7% to trade at $37.85 per barrel. Brent, the world oil benchmark, lost 2% to trade at $40.21 per barrel.