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Brunei
Wednesday, October 5, 2022
25.4 C
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Wednesday, October 5, 2022
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    Asian markets slide as recession risks remain high

    CNA – Asian markets sold off sharply yesterday and Europe looked set to follow as investors braced for a hefty United States (US) rate hike next week amid growing concerns of a global recession following warnings from the World Bank and the International Monetary Fund.

    MSCI’s broadest index of Asia-Pacific shares outside Japan opened yesterday in negative territory and sold off during the day. It was last down 1.1 per cent, after US stocks ended the previous session with mild losses.

    In the region, Australian shares were down 1.34 per cent yesterday, while Japan’s Nikkei stock index slipped one per cent. Hong Kong’s Hang Seng Index was down 1.1 per cent while China’s CSI300 Index was 0.86 per cent lower.

    “There is pain emerging in the equities markets and we are entering a phase where there will be further liquidation because rates are going to stay higher for longer,” said Suresh Tantia, senior investment strategist at Credit Suisse.

    “A strong US dollar does not help Asian markets and it will be a further negative for this region’s equity markets.”

    The dollar dropped 0.14 per cent against the yen to 142.95, after being down by 0.4 per cent earlier in the session.

    Japan’s threats of currency intervention might slow but not stop the yen from hurtling towards three-decade lows before the year end, market analysts and fund managers said.

    People walk past a screen displaying the Hang Seng stock index outside Hong Kong Exchanges. PHOTO: CNA
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