Asian stocks and commodities slide

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Rising interest rates and growth worries unnerve investors

A man wearing a protective face mask talks on his cellphone in front of a screen showing the Nikkei index outside a brokerage in Tokyo, Japan. Picture: REUTERS/ATHIT PERAWONGMETHA

MSCI’s broadest index of Asia-Pacific shares ex-Japan tumbled as much as 2.3% to 515.7, sliding for a seventh straight session and extending losses to 18% so far this year. The benchmark later pared losses to trade down 1.3%. “Softening global growth is the persistent wall of worry for markets as investors look beyond the next 3-6 months. The view on growth momentum seems to be that revenge spending after the pandemic may be affected by higher borrowing costs,” he said.

Hong Kong’s benchmark share index returned from a one-day holiday sharply lower on Tuesday and slumped more than 4% before nearly halving losses. Overnight, US stocks extended Friday’s bruising sell-off as investors rushed to protect themselves against the prospect of a weakening economy. Brent crude fell 1% to $104.75 a barrel and US West Texas Intermediate crude also declined 1.1% to $101.96 a barrel, adding to a 6% slump in the previous session. Both contracts are still up about 35% so far this year.

 

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