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.
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