{"id":10012,"date":"2022-08-16T16:26:44","date_gmt":"2022-08-16T16:26:44","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=10012"},"modified":"2022-08-16T16:28:01","modified_gmt":"2022-08-16T16:28:01","slug":"asia-stocks-drift-on-recession-fears","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/uncategorized\/asia-stocks-drift-on-recession-fears\/","title":{"rendered":"Asia stocks drift on recession fears"},"content":{"rendered":"

Asia stocks<\/a> drift on recession fears. Asian markets struggled for direction on Tuesday, weighed by worries over global growth following weak China data that knocked oil prices and commodity-linked currencies.<\/p>\n

The dollar held near a one-week high as investors piled back into the safe-haven currency, while the Aussie, euro and Chinese yuan buckled.<\/p>\n

MSCI\u2019s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) ticked up 0.2%, recovering from Monday\u2019s losses. MSCI\u2019s benchmark index has gained 5% from the year\u2019s lows but is still down 15% so far this year.<\/p>\n

Just as investors were taking heart from a four-week rally in global equities that pushed markets to their highest in more than three months, Monday\u2019s underwhelming Chinese activity data spanning industrial output and retail sales hit sentiment.<\/p>\n

Also, U.S. single-family homebuilders\u2019 confidence and New York state factory activity fell in August to their lowest since near the start of the COVID-19 pandemic, a further sign the world\u2019s largest economy is softening as the Federal Reserve raises interest rates.<\/p>\n

“In short, the risks of a global recession are suddenly much clearer. Then again, they were \u2018always\u2019 clear to some,” Rabobank said in a note. “And does anyone think that a central-bank pivot will make them less likely at this stage?”<\/p>\n

Overall, the picture was mixed across Asian bourses on Tuesday, with Tokyo (.N225) and Taiwan benchmarks little changed, while South Korean stocks (.KS11) gained 0.5%.<\/p>\n

Chinese stocks rose, a day after the central bank unexpectedly cut interest rates after data showed economic activity and credit expansion slowed sharply in July. The CSI 300 index (.CSI300) ticked up 0.1% after dipping on Monday.<\/p>\n

On Wall Street, major indexes climbed on Monday, reversing earlier session losses. Shares posted four straight weeks of gains amid optimism over a slowdown in U.S. inflation that could temper the pace of Fed rate hikes.<\/p>\n

The U.S. economy contracted in the first and second quarters, amplifying an ongoing debate over whether the country is, or will soon be, in recession.<\/p>\n

Growth worries were also the dominant theme in Europe.<\/p>\n

Euro zone government bond yields fell on Monday with investors concerned about possible recession and amid persistent fears of production cuts in Germany due to potential gas rationing.<\/p>\n

Read more:\u00a0Asian markets drop on rate worries ahead of inflation data<\/a><\/strong><\/em><\/p>\n

On Tuesday, the dollar index , which measures the greenback against six major peers, held steady at 106.53, just below the previous session\u2019s peak of 106.55, the strongest since Monday of last week.<\/p>\n

The euro , the most heavily weighted currency in the dollar index, was flat at $1.0158 after earlier slipping to the weakest since Aug. 5 at 1.0154.<\/p>\n

The Australian dollar fell as low as $0.70005, threatening to drop below the psychological 70 cent mark for the first time since Wednesday. New Zealand\u2019s kiwi slipped to $0.6349, also the lowest since Wednesday.<\/p>\n

Fragile demand outlook hit oil prices as they extended losses from the previous session.<\/p>\n

Brent crude futures lost 1% to $94 a barrel after falling to their lowest on Monday since before Russia sent troops into Ukraine on Feb. 24. WTI crude futures shed 0.7% to $88.80 a barrel.<\/p>\n","protected":false},"excerpt":{"rendered":"

Asia stocks drift on recession fears. Asian markets struggled for direction on Tuesday, weighed by worries over global growth following weak China data that knocked oil prices and commodity-linked currencies. The dollar held near a one-week high as investors piled back into the safe-haven currency, while the Aussie, euro and Chinese yuan buckled. MSCI\u2019s broadest […]<\/p>\n","protected":false},"author":8,"featured_media":10013,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,1],"tags":[470,2197,588],"class_list":["post-10012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-uncategorized","tag-china","tag-japan","tag-new-york"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/10012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=10012"}],"version-history":[{"count":0,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/10012\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/10013"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=10012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=10012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=10012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}