Asian stocks fragile amidst growth worries, dollar in demand

The dollar index after falling down to 0.8 percent last week to touch 10-month lows at USD 1.1662 was trading at USD 1.1697

 

The Asian stock markets were trying to recover on Monday following last week's thrashing as Covid-19 worries showed little sign of decreasing, while safe-haven flows benefited the dollar ahead of a key update on USmonetary policy.

 

A stack of "flash" manufacturing surveys for August were out on Monday that offers an early signs of how global growth is faring in the face of the Covid-19 Delta variant, with experts expecting some glide and especially in Asian market.

 

Concerns over China's economy have only escalated in recently while Beijing's regulatory repression on the tech sector has delivered a double blow to markets.

 

More than USD 560 billion was wiped from Hong Kong and mainland China stock exchanges last week as funds fuss on which sectors regulators might target next.

 

The aftermath were too evident in MSCI's broadest index of Asia-Pacific equities outside Japan which sank 4.8 percent the previous week. It had stumbled 0.2 percent higher but the gains looked brittle, earlier in morning.

 

The decline spread to Japan's Nikkei which fell down 3.4 percent last week to its lowest since January and the index bounce 1.2 percent early Monday.

 

The dollar index after falling down to 0.8 percent last week to touch 10-month lows at USD 1.1662 was trading at USD 1.1697.

 

The dollar made large gains on commodity and arising market currencies and breached higher on the Chinese yuan.

India Scanner News Network

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