Asian shares tumbled this morning as market sentiment shifts to risk aversion, which benefits bonds and dollars. Hong Kong stocks shed nearly 0.9% to its six-month low, Japan’s Nikkei slipped roughly 1.1%, and APAC markets excluding Japan also fell by about 0.6%. Chinese stocks listed in the US fell sharply after the government announced several censorships against major tech companies, including Didi Global Inc, which provides ride-sharing services in China. Didi’s stock fell more than 20% after the announcement.
As global markets remain quite volatile recently, investors are keenly waiting for minutes from the Fed which could signal some direction in US monetary policy. The just-released non-manufacturing activity index in the US shows that growth has slowed down from May. The Index fell from 64 to 60.1, but it is still at a relatively high level.