Asian shares pinned at lows after Wall St falls, NZ holds rates steady By Reuters

0 1



© Reuters. An investor looks at a stock quotation board at a brokerage office in Beijing, China January 3, 2020. REUTERS/Jason Lee

By Alun John

HONG KONG (Reuters) – Asian shares held near year-to-date lows on Wednesday as overnight declines on Wall Street reinforced worries about the economic impact of the Delta coronavirus variant sweeping through the region.

The dollar stayed strong against most peers, while New Zealand’s central bank held off on a widely expected decision to raise interest rates after the discovery of a Delta variant case sent the country into lockdown.

The Reserve Bank of New Zealand would have been the first G10 central bank to begin hiking interest rates, but said the decision to hold was made in the context of the nationwide restrictions.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.19%, having fallen for the past five sessions, and traded just above year-to-date lows touched in July.

Chinese blue chips rose 0.21% and rose 0.35%. Taiwan stocks fell 1.09%.

“A narrative around the peaking of economic growth in the second or third quarter is really hitting home,” said Kerry Craig, global market strategist at JPMorgan (NYSE:) Asset Management.

“Investors are trying balance the reopening of economies as vaccination rates go up, but also seeing the effects of the spreading Delta variant and that’s being reflected in the slowing economic data most of which has been surprising on the downside in the last two weeks,” Craig said.

China on Monday reported year-on-year GDP growth of 7.9% in the second quarter, below the 8.1% forecast in a Reuters poll of economists.

Overnight, Wall Street fell after retail sales came in below expectations and valuations become increasingly stretched. The lost 0.71% after posting a new record high on Monday. ()

“In today’s market we find its very difficult to find undervalued stocks to recommend to investors,” said Dave Sekera, chief U.S. market strategist at Morningstar Research Services.

U.S. stock futures, the , were little changed in Asian hours, down 0.01%.

In currency markets the dollar hit a nine-month high against the euro and held near recent peaks against other major currencies as COVID-19 concerns meant investors cut exposure to riskier currencies.

Oil declined further in early Asian trading after falling for four sessions thanks to the stronger dollar and worries about the rise in coronavirus cases.

dipped 0.14% to $66.50 a barrel.

The yield on benchmark was 1.2617% compared to its U.S. close of 1.258% on Tuesday

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Leave A Reply

Your email address will not be published.