Asian stocks fall again as Europe’s gas woes bite

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Energy prices stoke fears of recession and push bond yields higher

Sydney — Asian shares were down for a sixth straight session on Tuesday after a renewed spike in European energy prices stoked fears of recession and pushed bond yields higher, while tipping the euro to 20-year lows.

Sterling was down at $1.1766, after diving as deep as $1.1743 and levels last seen in March 2020 at the start of the pandemic. That saw the dollar index up to 108.870 and within a whisker of its July peak. “But growth in the services sector seems unlikely to accelerate by much so long as China’s zero-Covid policies remain in place; the pandemic-linked export boom is coming to an end; and power shortages due to droughts in parts of the country look set to hobble industry in the near term.”MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.4%, and has fallen every day in the past week.

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