On Wednesday, Asian markets fell as investors’ risk appetite waned.
In the face of mounting coronavirus incidence around the world, risk aversion limited exposure to riskier assets.
China’s strong approach toward Australia has prompted a warning from a senior US official.
Investors are fleeing riskier assets ahead of the release of the minutes from the Federal Reserve’s recent monetary policy meeting, sending Asian equities lower on Wednesday.
Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks rose 0.4 percent.
The Nikkei 225 index of Japan plummeted 0.9 percent, reversing 0.16 percent gains the day before. Traders reacted to news that Japan’s government may maintain its quasi-state of emergency in place in Tokyo throughout the Summer Olympics, as coronavirus cases in the region continue to rise.
On China’s tech difficulties, Hong Kong’s Hang Seng Index fell 0.1 percent to a six-month low.
As investors absorbed the Reserve Bank of Australia’s (RBA) statement on the gradual withdrawal of emergency policy assistance, the ASX 200 led the gains, trading at a near two-week high.
The FOMC minutes remained a key event, as they could reveal details of policymakers’ thought processes on tapering asset purchases and when rate hikes might start.
In the most recent development, Kurt Campbell, US President Joe Biden’s Asia adviser, stated that China’s relationship with Australia appears to be “unyielding,” since there is no evidence of a fast end to the “harshness” of its confrontational position./n
