AFP, Hong Kong :
Asian equities struggled again Tuesday despite a bounce in New York as investors fret over a perfect storm of issues that have hammered global markets, while the pound remained stuck around 20-month lows on Brexit uncertainty.
Bargain-buyers tried to step in after the latest sell-off but were unable to gain traction, with fears about the outlook for the global economy keeping sentiment beaten down.
The China-US trade row, signs of softness in both countries’ economies, the Huawei arrest, Brexit, demonstrations in France and tanking oil prices are among the problems facing investors, and analysts warned of more volatility to come. Adding to those problems is upheaval in India – another crucial economy — where the head of the central Reserve Bank of India has resigned following a row with Prime Minister Narendra Modi’s administration over alleged government interference.
Monday’s development sent the rupee, which was already Asia’s worst-performing currency, tumbling more than one percent Tuesday, with speculation the RBI had intervened to prevent heftier losses. The Mumbai stock market was down a similar amount. Global risk sentiment “is facing a towering wall of worry as virtually every major economy in the world is slowing, suggesting the synchronised global slowdown is accelerating at a much faster pace than thought,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
In Asian trade Hong Kong was down 0.1 percent at lunch, Tokyo shed 0.4 percent in the afternoon, Singapore was 0.4 percent off and Seoul was marginally lower. Bangkok and Jakarta also slipped.
However, Shanghai rose 0.3 percent by the break, Sydney was 0.1 percent
higher and Wellington added 0.2 percent. Manila and Taipei rose.
Asian equities struggled again Tuesday despite a bounce in New York as investors fret over a perfect storm of issues that have hammered global markets, while the pound remained stuck around 20-month lows on Brexit uncertainty.
Bargain-buyers tried to step in after the latest sell-off but were unable to gain traction, with fears about the outlook for the global economy keeping sentiment beaten down.
The China-US trade row, signs of softness in both countries’ economies, the Huawei arrest, Brexit, demonstrations in France and tanking oil prices are among the problems facing investors, and analysts warned of more volatility to come. Adding to those problems is upheaval in India – another crucial economy — where the head of the central Reserve Bank of India has resigned following a row with Prime Minister Narendra Modi’s administration over alleged government interference.
Monday’s development sent the rupee, which was already Asia’s worst-performing currency, tumbling more than one percent Tuesday, with speculation the RBI had intervened to prevent heftier losses. The Mumbai stock market was down a similar amount. Global risk sentiment “is facing a towering wall of worry as virtually every major economy in the world is slowing, suggesting the synchronised global slowdown is accelerating at a much faster pace than thought,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
In Asian trade Hong Kong was down 0.1 percent at lunch, Tokyo shed 0.4 percent in the afternoon, Singapore was 0.4 percent off and Seoul was marginally lower. Bangkok and Jakarta also slipped.
However, Shanghai rose 0.3 percent by the break, Sydney was 0.1 percent
higher and Wellington added 0.2 percent. Manila and Taipei rose.
