Friday, 21 August 2015 09:49
HONG KONG: Asian shares fell on Friday, continuing a global sell-off in equities that hit Wall Street overnight as concerns about the health of the world economy snowballed.
The dollar notched more losses, down more than two cents against the euro from where it stood before minutes from the US Federal Reserve dampened hopes for a rate rise next month.
Tokyo shares fell 2.31 percent in early trading while Seoul fell 1.59 percent and Sydney dropped 0.99 percent.
Shanghai lost 0.61 percent and Hong Kong fell 1.58 percent, continuing a slump that has brought the index to the brink of a bear market after dropping some 20 percent from its April peak.
“The overnight weakness in global markets is making people nervous,” Angus Gluskie, managing director at White Funds Management in Sydney, told Bloomberg News.
“The biggest concern among investors right now is the market volatility in China that shows investors are increasingly concerned about the health of the Chinese economy and how that might impact the rest of the world.”
US shares sank more than 2.0 percent Thursday, with the Dow dropping to its lowest level for 2015 as worries spread about the strength of the world economy.
Gold gained as investors looked for safer bets, rising to $ 1,159.00 in Asia compared to $ 1,138.80 late Thursday.
Market participants will be watching out for manufacturing gauges from China and Japan on Friday for fresh insight to how Asia’s top economies are growing.
Commodity shares continued their slide as concerns about a slowdown in China, the world’s top importer of industrial metals and energy, continued to weigh.
A slump in raw materials prices has wiped off some $ 2 trillion from commodity stocks since the middle of last year.
Shares in Petrochina fell 1.62 percent and CNOOC dropped 1.21 percent in Hong Kong as oil prices resumed their slump in Asia, after the US benchmark notched muted gains Thursday.
US benchmark West Texas Intermediate for October delivery, a new contract, fell 24 cents to $ 41.08 a barrel in morning Asian trade. The September contract expired Thursday.
Brent crude for October settlement tumbled 30 cents to $ 46.32 a barrel.
Analysts said oil held above the key $ 40 a barrel level thanks to a weaker greenback, which makes it cheaper for international investors to buy dollar-denominated oil.
Investors will be watching the weekly US oil rig count, due out on Friday, to see if a slump in crude prices has started to dampen production in the world’s top consumer.
In currency markets, the dollar stood at 123.30 yen, down from 123.38 yen in New York on Thursday.
The euro was rangebound at $ 1.1244 and 138.66 yen, compared with $ 1.1241 and 138.69 yen in New York.
