- Asian shares mark the biggest losses in two weeks after tech-rout in the US disappointed Wall Street traders.
- Beijing prepares long-term plan to oust American chipmakers, Chinese President harshly criticizes foreign interference.
- Risk catalysts can keep weighing on the quote ahead of the US NFP.
Asian equities are set for the biggest weekly losses since April after their American counterparts witnessed the sea of red on Thursday. While portraying the bearish move, the MSCI index of Asia-Pacific shares outside Japan drops 1.36% whereas Japan’s Nikkei 225 drops over 1.10% ahead of Friday’s European session.
Australia’s ASX 200 becomes the biggest loser of the region, down 2.8% now, even as Aussie PM Scott Morrison said to develop a plan to re-open the economy by December. New Zealand’s NZX 50 follows the footprints of its largest customer Australia with a 2.4% loss while markets in Shanghai and Hong Kong drop near 1.5% by the press time.
Moving on, South Korea’s KOSPI and Indonesia’s IDX 50 were no different with around 1.30% losses while India’s BSE Sensex drops 1.15% to 38,552 as we write.
China’s readiness to be self-dependant, as far as the computer chips are concerned, triggered the tech rout the previous day, which in turn marked the biggest daily losses of Nasdaq. Also amplifying the US-China tussle are statements from the Global Times suggesting the Asian major’s threat to drop US debt demands. It should be noted that China is the second biggest holder of American debt securities.
Not only the US markets and their Asian counterparts but S&P 500 Futures also nurses the biggest losses in 12 weeks. However, the US 10-year Treasury yields gain 1.9 basis points (bps) to 0.64% whereas the US dollar index (DXY) refrains from snapping the three-day winning streak.
Traders are currently waiting for August month’s employment data from the US. While forecasts suggest no major threat to the jobs recovery in the world’s largest economy, recently mixed data favor the Fed’s dovish bias.
Read: Nonfarm Payrolls Preview: Fed’s policy shift to introduce vital noise
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