Covid-19 woes and tech crackdown hammer Asian stocks; bonds rally | Malay Mail

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SINGAPORE, July 8 ― Asian stocks fell to a six-week low today as an extended selloff in tech shares in Hong Kong and rising virus cases added to a broad risk-averse mood, pressuring oil prices and lending support to bonds and the dollar. A surprise dovish turn from Chinese policymakers also...

SINGAPORE, July 8 ― Asian stocks fell to a six-week low today as an extended selloff in tech shares in Hong Kong and rising virus cases added to a broad risk-averse mood, pressuring oil prices and lending support to bonds and the dollar.

“Market sentiment is turning somewhat shaky,” said OCBC analyst Terence Wu. Japan's Nikkei fell 0.6 per cent and S&P 500 futures wobbled 0.3 per cent lower. The rally lacks an obvious catalyst but seems to be driven by large position shifts as investors unwind bets on yields rising with growth, resulting in the curve instead flattening on the assumption that an inflation pulse generated by the recovery will be shortlived.

On the policy front, though, an end to stimulus looms and minutes from the June Federal Reserve meeting confirmed the central bank has a wary eye on inflation and is prepared to act if necessary ― even if it still thinks that is a long way off. China looks to be leaning the other way, and late yesterday cabinet said policymakers will use timely cuts in the bank reserve requirement ratio to support the real economy, especially small firms.

 

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