Concerns about escalating COVID-19 infections drove Asian equities lower for the second day in a row.
Despite the Fed’s cautious forecast on economic recovery, the US dollar strengthens as risk sentiment deteriorates.
China’s State Council suggests more economic support, implying RRR reductions.
On Thursday, Asia-Pacific equities tumbled, taking attention away from Wall Street. Fears of rising coronavirus infections in the region have investors avoiding riskier assets amid increased market volatility.
Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks lost 1% to its lowest level since late May.
Investors are nevertheless wary, as Chinese IT stocks in Hong Kong have been under pressure due to regulatory concerns.
For the eighth trading session in a row, Hong Kong’s Hang Seng Index fell 1.9 percent.
The Nikkei fell 0.72 percent, while the Topix fell 0.42 percent. The Kospi index in South Korea declined 0.61 percent.
The Japanese government is planning to extend the COVID-19 state of emergency in Tokyo until August 22. Since the epidemic reached the country, South Korea has seen the most daily coronavirus infections.
The Shanghai Composite Index fell 0.57 percent, while the ASX 200 Index rose 0.1 percent.
The US Dollar Index, which measures the greenback’s performance versus six major currencies, rose 0.12% to 92.75./n
