SYDNEY – Asian share markets stumbled on Wednesday as a bout of risk aversion boosted bonds and the dollar, while investors braced for minutes from the Federal Reserve’s last meeting which should underline a hawkish turn in US monetary policy.
Dealers were hard pressed to find a single catalyst for the sudden change of mood, but a Chinese crackdown on tech companies had clearly had an impact.
Hong Kong stocks shed another 1 percent to near six-month lows, while US-listed ride-hailing company Didi Global Inc shed more than 20 percent in New York. Alibaba Group, Baidu Inc and JD.com all fell.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged down 0.4 percent, while Japan’s Nikkei slipped 0.9 percent.
Going the other way, Australian stocks managed to firm 0.6 percent and Chinese blue chips added 0.2 percent.
Nasdaq futures and S&P 500 futures were both holding steady for the moment.
Wall Street had been unsettled by a survey showing a slight cooling in the red-hot US services sector, though at 60.1 the ISM index was still historically high.
“Normally any ISM reading approaching 60 or above would be seen as strong, but details play to the idea that there is a speed limit to the recovery amid shortage of inputs and labor, alongside still elevated costs,” said Rodrigo Catril, a senior FX strategist at NAB.
The skittish mood helped Treasuries extend their recent rally with yields on US 10-year notes dropping almost 8 basis points overnight to 1.348 percent. That was the lowest since February and also the largest daily decline since February. — Reuters
