HONG KONG/NEW YORK- Asian shares extended losses for the second day on Tuesday while the dollar rose, as possible delays in expanded US stimulus and concerns about fresh pandemic lockdowns in Europe knocked investor sentiment.
Hong Kong shares of HSBC and Standard Chartered fell more than 2 percent each, as global banking stocks remained under intense pressure on reports about financial institutions allegedly moving illicit funds.
British lenders HSBC and StanChart were among global lenders named as having transferred more than $2 trillion in suspect funds over nearly two decades.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.5 percent.
Australia’s S&P/ASX 200 dropped 0.7 percent pressured by miners and energy stocks, while China’s blue-chip index shed 0.1 percent and Hong Kong’s Hang Seng index was down 0.5 percent. Japanese markets were closed for a public holiday.
After-hours trade pointed to further selling pressure on Wall Street on Tuesday, with S&P 500 futures down 0.2 percent in early Asia and Nasdaq 100 futures off 0.4 percent.
“We can’t see any positive news on the horizon in the near-term for the markets to rebound,” said Steven Leung, executive director for institutional sales at Hong Kong brokerage UOB Kay Hian.
Overnight on Wall Street, the Dow Jones Industrial Average fell 1.84 percent, the S&P 500 lost 1.16 percent, and the Nasdaq Composite dropped 0.13 percent.
US stocks have tumbled over the past three weeks as investors dumped heavyweight technology-related shares following a stunning rally that lifted the S&P 500 and the Nasdaq to new highs.