Asian stocks fall to seven-month low

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MSCI index of Asia-Pacific shares falls to lowest level since mid-December

Asia’s stock markets fell to fresh troughs on Tuesday led by a third straight session of heavy selling in Chinese internet giants, while bond and currency markets traded on edge ahead of the Federal Reserve policy meeting.

Big decliners included Meituan and Alibaba, whose shares fell 8.15% and 3.38% respectively. Both were down for the third day in succession with investors expecting the companies’ food delivery arms to be affected by new regulations guaranteeing workers above minimum pay. Elsewhere in Asia, markets were a little more optimistic, with Japan’s Nikkei rising 0.35%, and Australian shares up 0.54%. S&P 500 futures dipped 0.1% and Euro Stoxx 50 futures were broadly steady.

Alphabet, Apple and Microsoft are due to publish quarterly results late on Tuesday, with Amazon.com’ due later in the week. The dollar hovered a little below recent highs, with the euro and sterling gaining ground, the latter helped by a decline in new daily Covid-19 cases in the UK.

 

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