Asian stocks post biggest fall in two months on U.S. stimulus worries
January 26, 2021 @ 10:24 +03:00
Asian stocks fell on Tuesday, retreating from record highs as lingering concerns about potential roadblocks to the Biden administration’s $1.9 trillion stimulus weighed on sentiment, dragging U.S. Treasury yields to three-weeks lows. The lower risk appetite lent some support to the dollar against a basket of currencies, while oil prices edged down.
EUROSTOXX 50 futures eased 0.1% while FTSE futures added 0.03%, indicating a mixed open for European stock markets. E-Mini futures for the S&P 500 ESc1 shed 0.5%. In a sea of red seen across markets, South Korea and Hong Kong topped losers and fell more than 2% each, Japan slipped 0.9% and Chinese stocks shed 1.6%. All touched milestone highs earlier this month.
MSCI’s broadest index of Asia-Pacific shares outside Japan shed 1.5% to 717.3 but was not far off a record high struck on Monday and is still up 8% so far this year. The index was on course to log its biggest fall since late November.
A flood of money supply, ultra-low or zero interest rates and COVID-19 vaccine rollouts have sparked a “buy everything” rally over the last several months. Some investors – pointing to skyrocketing prices of assets such as bitcoin or, on Monday, the soaring stockprice of short-squeezed videogame retailer Gamestop – are beginning to worry markets are entering bubble territory.
U.S. lawmakers agreed that getting COVID-19 vaccines to Americans should be a priority even as they locked horns over the size of a pandemic relief package. Disagreements have meant months of indecision in a country suffering more than 175,000 COVID-19 cases a day with millions out of work.
The dollar advanced to a near one-week high against a basket of currencies, as volatility in stocks sapped investors’ appetite for riskier currencies. The euro dipped to $1.2127.
Asian stocks post biggest fall in two months on U.S. stimulus worries, Reuters, Jan 26