Asia stocks drop as US Fed chief's grim warning adds to second wave fears

  • 📰 staronline
  • ⏱ Reading Time:
  • 55 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 75%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

HONG KONG (AFP): Asian equities sank Thursday (May 14) following another sell-off in New York after the head of the Federal Reserve warned of 'lasting damage' to the economy from shutdowns caused by the coronavirus, compounding worries about a second wave of infections.

US accusations that Chinese hackers were trying to steal potentially lucrative Covid-19 vaccine research added to the downbeat mood across trading floors as a weeks-long market rally shows signs of coming to an end.Fed chief Jerome Powell warned of a"highly uncertain" outlook for the world's top economy, adding that lawmakers might have to provide even more stimulus to the US$3 trillion already stumped up.

Congress should try to find other ways to provide support, he said, adding that it"could be costly, but worth it if it helps avoid long-term economic damage and leaves us with a stronger recovery". Tokyo, Shanghai, Hong Kong, Taipei, Singapore and Bangkok all fell one per cent or more, while Mumbai was off more than two percent. Seoul eased 0.8 percent and Jakarta was 0.9 percent lower.

Signs of an easing in the outbreak globally had led to hopes for a slow return to recovery, but fresh infections in South Korea, China, Germany and other countries as they eased lockdowns have thrown a spanner in the works. China-US relations were strained further Wednesday after two US security agencies said hackers were trying to steal research and intellectual property related to treatments and vaccines.The allegation comes as the relationship between the two countries grows increasingly tense after a series of rows linked to Trump's accusations over Beijing's handling of the outbreak, and threats to hit China with fresh tariffs that have renewed trade war fears.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 4. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Asia stocks down after US Fed warning | The Malaysian InsightHis comments on lasting economy damage adds to second virus wave fears.
Source: msianinsight - 🏆 8. / 63 Read more »

Asia stocks sink as US Fed Reserve warning adds to second wave fearsOil prices climbed more than 2% as the lifting of quarantine measures fuels hope for a pick-up in demand. FMTNews Asia Stocks
Source: fmtoday - 🏆 5. / 72 Read more »