AFP, Hong Kong :
Asian equities mostly fell again Wednesday, extending the previous day’s geopolitics-fuelled sell-off, with energy firms taking another battering in response to an oil market rout.
Investors around the world are fleeing riskier assets such as stocks and high-yielding currencies in search of safety as a wave of negative issues dominates the news.
Stephen Innes, head of Asia-Pacific trading at OANDA, pointed to “a toxic geopolitical cocktail of nagging concerns” from Chinese growth, stuttering Brexit talks, Italy’s budget standoff with Brussels and the killing of Saudi Arabian journalist Jamal Khashoggi.
Even US stocks – which have been supported in recent months by a strong economy despite sharp losses elsewhere – are feeling the strain, Innes added.
“Significant for global equity investors, the US equities Teflon persona was seriously questioned as price action suggested there is one asset class investors fear: equities,” he warned in a note.
“And like migratory birds heading south for winter, the icy chill enveloping global stock markets has sent investors flocking to safe to haven assets.”
Despite an afternoon bounce, Wall Street’s three main indexes ended with losses following a mixed round of earnings. In Asia, markets fluctuated throughout the day.
Hong Kong, which dived more than three percent Tuesday, lost 0.4 percent.
Asian equities mostly fell again Wednesday, extending the previous day’s geopolitics-fuelled sell-off, with energy firms taking another battering in response to an oil market rout.
Investors around the world are fleeing riskier assets such as stocks and high-yielding currencies in search of safety as a wave of negative issues dominates the news.
Stephen Innes, head of Asia-Pacific trading at OANDA, pointed to “a toxic geopolitical cocktail of nagging concerns” from Chinese growth, stuttering Brexit talks, Italy’s budget standoff with Brussels and the killing of Saudi Arabian journalist Jamal Khashoggi.
Even US stocks – which have been supported in recent months by a strong economy despite sharp losses elsewhere – are feeling the strain, Innes added.
“Significant for global equity investors, the US equities Teflon persona was seriously questioned as price action suggested there is one asset class investors fear: equities,” he warned in a note.
“And like migratory birds heading south for winter, the icy chill enveloping global stock markets has sent investors flocking to safe to haven assets.”
Despite an afternoon bounce, Wall Street’s three main indexes ended with losses following a mixed round of earnings. In Asia, markets fluctuated throughout the day.
Hong Kong, which dived more than three percent Tuesday, lost 0.4 percent.
