Asian Shares Head for Lowest Close Since November, Dollar Stays Strong

The Hong Kong benchmark touched its lowest this year, and was last down 2.28% while Chinese blue chips fell 2.4%.

“There are several reasons for the declines, but the main thing is the ongoing regulatory risk. Markets are reacting sharply to regulatory changes or any suggestions in state media that they might be coming,” said Gary Ng, an economist at Natixis in Hong Kong, pointing as an example to falls in alcohol stocks, which are rumoured to be in the authorities’ sights.

Liquour company Kweichow Moutai, one of Asia’s biggest stocks fell 4.18% on Friday.

Hong Kong’s embattled tech sub index dropped 3.57% as state media said China’s National People’s Congress on Friday officially passed a law designed to protect online user data privacy, which is expected to add more compliance requirements for companies in the country.

Recent regulatory crackdowns have smashed stocks from property to tech to education.

South Korea’s Kopsi was also down 0.92%, set for its worst week in seven months.

Japan’s Nikkei fell 0.87% to a seven-month low.

U.S. stock futures, the S&P 500 e-minis, were down 0.17%, and in early European trades, the pan-region Euro Stoxx 50 futures were down 0.02%.

As well as China, markets are also worried about slowing growth in Asia amid outbreaks the Delta variant of the new coronavirus, and also the potential for the United States to begin shrinking its monetary stimulus.

Fan Cheuk Wan, HSBC’s Asia chief investment officer for private banking and wealth management, said markets were now starting to look to for policy responses from Asian governments, both in terms of speeding up vaccination roll outs and policy support from to mitigate the growth risk.

“The Chinese government will likely roll out more measures such as targeted reserve requirement ratio cuts or tax relief or subsidies for small and medium enterprises,” she said, though noted they would likely avoid broad based easing through interest rate cuts.

China as expected left its benchmark lending rate for corporate and household loans unchanged for a 16th straight month at its August fixing on Friday.


The dollar index, which measures the greenback against six rivals, rose as high as 93.597 for the first time since early November, as traders sought safety.

It has also been boosted by widely held expectations the Federal Reserve could still start to taper stimulus this year, and is set to post its strongest weekly gain in two months.

The Fed will hold its annual research conference in Jackson Hole, Wyoming, next week, where Fed Chair Jerome Powell will o give a speech that will be closely watched.

The Australian dollar sank to a new 9 1/2-month low as a COVID-19 lockdown in Sydney was extended by a month.

Oil prices stabilised after sharp falls earlier in the week. U.S. crude ticked up 0.58% to $64.06 a barrel. Brent crude rose 0.62% to $66.81 per barrel.

US Treasuries moved little in Asian hours, The yield on benchmark 10-year Treasury notes was 1.238% compared with its U.S. close of 1.242%.

For a look at all of today’s economic events, check out our economic calendar.

(Editing by Stephen Coates)

Source link

0 0 votes
Article Rating

Notifier de
0 Commentaires
Commentaires en ligne
Afficher tous les commentaires
Reset Password

Avertissement sur les risques :

Le trading peut vous exposer à des risques de pertes supérieures aux dépôts et ne convient qu’à une clientèle avisée ayant les moyens financiers de supporter un tel risque. Les CFD sont des instruments complexes et présentent un risque élevé de perte rapide en capital en raison de l’effet de levier. Entre 74 et 89% des comptes de clients de détail perdent de l’argent lors de la négociation de CFD. Vous devez vous assurer que vous comprenez comment les CFD fonctionnent et que vous pouvez vous permettre de prendre le risque élevé de perdre votre argent. Ce site n’est en aucun cas une offre de conseil en investissement ni une incitation quelconque à acheter ou vendre des instruments financiers. Trader le Forex et/ou les CFD’s implique un niveau de risque élevé, et peut ne pas être approprié car vous pouvez subir des pertes supérieures à votre dépôt. L’effet de levier peut être en votre défaveur.

Vous devez être conscient et avoir une compréhension complète de tous les risques associés au marché et au trading. Le site peut être amené à produire des commentaires d’ordre général, ce qui ne constitue pas des conseils en investissement et ne doit pas être interprété comme tel.

Veuillez recourir aux conseils d’un conseiller financier extérieur. Le site décline toute responsabilité pour les erreurs, inexactitudes ou omissions et ne garantit pas l’exactitude ou le caractère complet des informations, textes, graphiques, liens ou autres éléments contenus dans cette documentation. Toute information et toute mise à disposition sur le site ont un caractère privé.