Asian shares hit two-week lows, dollar gains as investors scurry for cover

Asian shares hit two-week lows, dollar gains as investors scurry for cover

The Asian stock price hit to a two-week low on Wednesday while dollar neared a four-month high as the COVID-19 lockdowns imposed in Europe and possible tax hikes in US hit the risk appetite, thus leading to one battle to safety.

The European and US stock futures were weak during the Asian trading. London’s FTSE futures were lower 0.65 per cent, E-Mini futures for S&P 500 were 0.1 per cent down while the Eurostoxx 50 futures were 0.6 per cent lower.

The MSCI’s widest index of the Asia-Pacific stocks outside Japan dropped by 1.3 per cent post losing 0.9 per cent on Tuesday.

The index has witnessed a disappointing figure in March post 5 consecutive months of profits, as the risk assets were previously spooked by fear of inflation by the successful COVId-19 vaccine rollout and huge US fiscal stimulus.

South Korea’s KOSPI stumbled 0.4 per cent while Japan’s Nikkei slipped 2 per cent. Hong Kong’s Hang Seng dropped by 2.2 per cent. The Chinese stocks were under the red zone for a second straight day, with the CSI300 index low by 1.65 per cent.

On Tuesday, Janet Yellen, the Treasury Secretary informed the Congress that the US economy stayed at risk, further adding to the investor concerns.

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