Asian shares fall as dollar gains, Australian dollar slides
Concerns over Federal Reserve, slowing growth in China’s service sector weigh on Asian markets
The dollar hit a one-month high against a basket of currencies on Wednesday while Asian shares fell, hit by worries that the days of easy money from the US Federal Reserve are numbered.
Asian shares extended their losses after a survey showed that growth in China’s services sector sagged to its weakest pace in nine months in June, adding to signs of a slowdown in the world’s second-largest economy.
Hong Kong shares extended losses with Chinese material and banking counters coming under selling pressure as losses accelerated after the China services data and a consumer sector survey remained modest in June.
In late morning trade, the Hang Seng Index was down 2.1 per cent at 20,233.7 points, while the China Enterprises Index of the top Chinese listings in Hong Kong dived 3 per cent.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.9 per cent, pulling away from a near two-week high set on Tuesday.
Regional shares fell broadly, with Australian equities down 2.3 per cent, South Korean stocks down 1.3 per cent and Shanghai shares down 1.8 per cent.