Asian Shares Retreat On Recession Worries

RTTNews | 938 days ago
Asian Shares Retreat On Recession Worries

(RTTNews) - Asian stocks fell broadly on Monday amid lingering worries over a possible recession and uncertainty over China's economic reopening as the country battled a wave of COVID infections.

China's top leaders pledged to stimulate domestic consumption and the real estate market, helping limit regional losses to some extent.

China's Shanghai Composite index tumbled 1.92 percent to 3,107.12 as a surge in new virus cases hit urban centers from north to south. Hong Kong's Hang Seng index dropped half a percent to 19,352.81.

A survey showed that Chinese business confidence fell to its lowest level in nearly a decade, highlighting deepening cracks in the country's economy.

Japanese shares suffered heavy losses as the yen strengthened on speculation that the Bank of Japan (BoJ) could tighten its ultra-loose monetary policy amid rising inflationary pressures.

The Nikkei average fell 1.05 percent to 27,237.64 ahead of the BoJ monetary policy statement due Tuesday. No change in monetary policy is expected but traders will parse the statement carefully for any changes in the language. The broader Topix index closed 0.76 percent lower at 1,935.41.

Seoul stocks extended losses for a third day running amid worries that further policy tightening by the Fed could result in a global recession next year. The Kospi average dropped 0.33 percent to 2,352.17.

Australian markets fell for a third straight session as financials and utilities dragged, offsetting gains in the mining sector. The benchmark S&P/ASX 200 slipped 0.21 percent to 7,133.90 while the broader All Ordinaries index closed 0.21 percent lower at 7,321.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 0.74 percent to 11,518.14 following hawkish signals from the Federal Reserve and the European Central Bank.

The services sector in New Zealand expanded at a slower pace in November, the latest survey from BusinessNZ revealed earlier today.

A Separate survey showed consumer confidence in the country fell sharply in the fourth quarter to the lowest level since the figures were first compiled in 1988.

U.S. stocks fell for a third straight session on Friday and suffered a second straight week of losses on concerns that the Fed's hawkish stance on rate hikes could tip the U.S. economy into a recession.

The Dow slipped 0.9 percent, the tech-heavy Nasdaq Composite lost 1 percent and the S&P 500 gave up 1.1 percent.

read more
Bay Street Likely To Open On Mixed Note

Bay Street Likely To Open On Mixed Note

Canadian shares may open on a mixed note Monday morning, tracking a weak lead from European markets and firm commodity prices. The mood is likely to be cautious as investors await Canadian inflation data for the month of June on Tuesday.
RTTNews | 3h 3min ago
Pound Falls As Traders Speculate BoE Rate Cut Decision

Pound Falls As Traders Speculate BoE Rate Cut Decision

The British pound weakened against other major currencies in the European session on Monday, as traders speculate that the Bank of England (BoE) is likely to reduce its interest rate in the next month's monetary policy decision.
RTTNews | 3h 28min ago
FTSE 100 Modestly Higher

FTSE 100 Modestly Higher

The U.K. market is up in positive territory on Monday, even as other major markets in Europe are languishing in negative territory amid rising concerns about trade war following U.S. President Donald Trump's threat that he would impose a 30% tariff on EU imports from August 1.
RTTNews | 3h 40min ago
Dollar Rebounds As Trade War Escalates

Dollar Rebounds As Trade War Escalates

A steep escalation in the trade related tensions between the U.S. and its trade partners boosted the dollar and the Dollar Index during the week ended July 11.
RTTNews | 3h 53min ago
Pound Falls Against Majors

Pound Falls Against Majors

The British pound weakened against other major currencies in the European session on Monday.
RTTNews | 3h 54min ago
DAX Notably Lower As Trade War Worries Mount

DAX Notably Lower As Trade War Worries Mount

German stocks are notably lower on Monday as trade war worries escalated after U.S. President Donald Trump threatened over the weekend that he would impose a 30% tariff on EU imports from August 1.
RTTNews | 4h 41min ago
Sensex, Nifty Decline As Trade Tensions Weigh

Sensex, Nifty Decline As Trade Tensions Weigh

Indian shares ended Monday's session lower as U.S. President Donald Trump escalated his trade offensive, leading to increased volatility in global markets and prompting investors to seek refuge in safe-haven assets.
RTTNews | 5h 5min ago