SINGAPORE : Asian stocks fell the most in two weeks on Monday as concern about rapid U.S. rate rises and slowing growth rattled investors, while the euro found support after Emmanuel Macron won a second term as French president.
The euro was broadly steady at $1.0802, compared with broad dollar gains elsewhere, and it touched an almost two-month high against a struggling sterling. The news was small relief, though, for broader worry about a global backdrop of high inflation and likely rate rises that have been pounding bond markets for months - exacerbated by war in Ukraine and disruption from coronavirus-related lockdowns in China.
"Spiking food and gasoline prices plus the end of key stimulus programs has investors concerned about the low-income consumer's ability to spend." The middle of China's onshore currency trading band was fixed at its lowest level in eight months on Monday, seen as an official nod for the yuan's recent slide and it was quickly sold to a one-year low of 6.5225 per dollar.
Brent crude futures dropped 2.7 per cent to a two-week low of $103.88 a barrel. U.S. crude futures fell 2.6 per cent to $99.38 a barrel.