Asian stocks give up gains

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Shares shed recent gains as investors turn cautious over China worries

A man wearing a protective face mask talks on his cellphone in front of a screen showing the Nikkei index outside a brokerage in Tokyo, Japan. Picture: REUTERS/ATHIT PERAWONGMETHA

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.57%, hurt by a 1.5% fall in Chinese blue chips. The US and others including the EU sanctioned Chinese officials on Monday for human rights abuses in Xinjiang, and Beijing hit back with punitive measures against European legislators, diplomats, institutes and families.

Beyond China, Asian shares were mixed after Wall Street’s gains on Monday as investors cheered a break in the recent run-up of bond yields. “It doesn’t appear that you’re going to see much contagion from Turkey,” said Alex Wolf, head of investment strategy for Asia at JPMorgan Private Bank citing “pretty strong flows into Asia”.Benchmark 10-year notes ticked up slightly, last yielding 1.6857%, but down from 1.732% late on Friday.

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