Sign up now for FREE unlimited access to Reuters.com Register TOKYO, June 29 (Reuters) – Asian stock markets fell on Wednesday, extending Wall Street losses amid worries about inflation and the possibility of a recession, which also boosted the dollar’s safe haven. Japan’s Nikkei index fell 0.98%, while MSCI’s broader Asia-Pacific stock index outside Japan (.MIAPJ0000PUS) fell 1.37%, falling from Australian stocks (.AXJO), down 0.81% and the Korean KOSPI (.KS151)%. Asian stocks closed higher on Tuesday as China announced a easing of quarantine requirements for incoming passengers, in what some observers saw as the biggest easing to date for its “zero COVID” strategy. read more Sign up now for FREE unlimited access to Reuters.com Register But the positive impact had diminished on Wednesday. “Inevitably, markets tend to overreact to this kind of news,” said Carlos Casanova, senior economist at UBP in Hong Kong. “In order to be sustainable, we really want to see these measures implemented in real re-operation.” Chinese blue chips (.CSI300), which hit a four-month high the previous day, lost 1.16%, while the Hong Kong benchmark (.HSI) fell 1.83%. EUROSTOXX 50 futures fell 0.57% and FTSE futures lost 0.68% before European markets opened. Losses in Asia followed a turbulent day in U.S. markets, with the S&P 500 falling more than 2% as data showed U.S. consumer confidence fell to a 16-month low in June amid fears that high inflation would could cause a significant slowdown in the economy. the second half of the year. read more “Everything points to growing expectations for an economic slowdown, a potential recession in the US economy, perhaps as soon as this year,” Casanova said. Renewed worries about the possibility of a global recession led investors to the safe haven dollar and the dollar index remained stable at 104.5. The euro fell 0.6% against the dollar overnight and traded slightly lower in Asia at $ 1.0506. The Japanese yen stood at 136.03 yen per dollar, not far from last week’s 24-year low of 136.7. The yen has struggled as the Bank of Japan maintains a loose monetary policy even as other major banks tighten, a point reiterated by BOJ Governor Haruhiko Kuroda on Wednesday. read more The yield on 10-year US government bonds fell seven basis points to 3.134%. Oil prices fell slightly after three gains, but the tightness of global supply limited the losses. An overnight report showed that Saudi Arabia and the United Arab Emirates are unable to significantly increase production in the near future. read more Brent crude futures fell 0.86% on the day to $ 116.96 a barrel. US crude fell 0.72% to $ 110.94. The gold spot remained stable, gaining 0.07% to trade at $ 1,820.7600 an ounce. Sign up now for FREE unlimited access to Reuters.com Register Report by Sam Byford in Tokyo. Editing: Simon Cameron-Moore Our role models: The Thomson Reuters Trust Principles.
