Asian shares fall again, dollar drifts By Reuters
By Alun John
HONG KONG (Reuters) – Asian shares gave up early gains to fall again on Thursday, weighed by declines in China and Hong Kong, even after a strong lead-in from Wall Street which had also pushed the dollar to the lower end of its recent range.
After hitting a record 31-year-high Monday, the MSCI broadest index of Asia-Pacific share shares, minus Japan, was 0.45% down and.47% respectively.
According to Shane Oliver (OTC Capital), chief economist of AMP, “It’s a bit choppy, uncertain at present. We’ve had a couple soft days due to worries about global economic growth but suddenly markets, at most U.S., markets conclude ‘its actually not that bad afterall’.”
Inflation and supply chain concerns could continue to weigh on shares over the next few weeks. “Of course, in Asia we have a slowdown” he said.
There were gains on Thursday in Australia, up 0.65%, but the Hong Kong benchmark fell 0.42% with property names continuing to drag – embattled developer China Evergrande Group fell another 8%
Chinese blue chips lost 0.66%, a day after economic data missed expectations.
The – was flat in U.S. stock markets.
U.S. stock futures closed higher overnight as rising crude oil prices supported energy shares. A raft of U.S. data also helped those who believe that growth should continue in the largest economy on earth.
The rose 0.68%, the gained 0.85% and the added 0.82%. ()
The dollar fell overnight against major currencies. However, it was unchanged in Asian hours. Analysts at Westpac said that the greenback looked stable in the recent range.
According to them, the U.S. Federal Reserve may take time to reduce its huge asset purchases, which could boost the dollar. However, the downside “is unlikely to develop anytime soon” with worries about the impact of Delta (coronavirus) on global recovery prospects. This was further emphasized by China’s lower August activity data.
U.S. Treasury yields inched down in Asian hours with the yield on benchmark at 1.299% compared with its U.S. close of 1.304%. Analysts at Westpac said that this too was likely to remain in the range.
The drawdown in U.S. crude oil stocks caused some price declines and halted some of the week’s gains.
which touched its highest since late July on Wednesday, fell 0.24% on Thursday to $75.3 per barrel, while dipped 0.22% to $72.45 a barrel.
was flat at $1794.41 per ounce, having fallen below the key $1,800 level on Wednesday, hit by a bout of technical selling[GOL/]
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