AFP, Hong Kong :
Asian markets extended their rout and the dollar hit 15-month lows against the yen Thursday after Federal Reserve boss Janet Yellen raised concerns about the global economy, essentially quashing the chances of another US rate hike any time soon.
Hong Kong led a broad sell-off across the region, while an ongoing supply glut
and production splurge saw oil prices sink below $27 a barrel. And, highlighting the impact the slump in commodities is having, Australian mining giant Rio Tinto reported an annual net loss of $866 million.
Dealers continued their flight to safe investments that has played out across trading floors from Asia to the Americas this week as they fret about a possible global recession.
Hong Kong stocks — closed from Monday to Wednesday for the Chinese New Year break — slumped 4.2 percent to their lowest level since June 2012 in the
afternoon. It had already lost 12 percent by the end of trade Friday.
Selling was also stoked by concerns about riots in the city this week that saw police battle street sellers, injuring several people, which analysts said could hit tourism. “You can’t avoid a drop because everywhere has come down so much during this time and the same concerns are still there – oil price, global recession,”
Steven Leung, an executive director for institutional sales at UOB Kay Hian, told Bloomberg News.
