SYDNEY, Aug 23 — Asian share markets were trying to pick up the pieces today following last week’s thrashing as coronavirus concerns showed little sign of abating, while safe-haven flows benefited the dollar ahead of a key update on US monetary policy.
More than US$560 billion was wiped from Hong Kong and mainland China exchanges last week as funds fretted on which sectors regulators might target next. “Following a strong V-shaped recovery, there are many signs of slower growth,” says BofA’s chief investment strategist Michael Hartnett. The spread of the Delta variant also has the potential to upset the timing of the US Federal Reserve’s tapering plans.
“Our base case is that the FOMC will announce a taper in September if the August non-farm payrolls is strong,” said Joseph Capurso, head of international economics at CBA. The single currency was trading at US$1.1697, after losing 0.8 per cent last week to touch 10-month lows at US$1.1662. That in turn helped the dollar index to a 10-month peak at 93.734 , and it was last trading firm at 93.507.