Asian stocks stumbled on Monday and the dollar rose as part of a global crisis fueled by unexpected inflation in the United States, which raised bets on a more aggressive campaign by the Federal Reserve (Fed, central bank) on hikes in the interest rates.
All three major Wall Street indices plunged. being the technological Nasdaq the one that received the biggest blow because technological companies, susceptible to the rise in interest, were also impacted.
European markets were also hit.
This was the case with Asia: Hong Kong, Tokyo, Seoul, Taipei and Wellington lost more than 2%, while Shanghai, Singapore, Manila and Jakarta suffered almost as much.
The dollar continued to push its rise on expectations of an increase in interest rates in the United Stateshitting multi-year highs against its peers and flirting with a 24-year high against the yen.
Recent Covid-19 outbreaks in Shanghai and Beijing also prompted authorities to reimpose containment measures soon after lifting them, fueling fears about the world’s second-largest economy.
The possibility of further restrictions in China’s largest cities is also influenced by crude oil prices, with concerns about a potential US recession and a stronger dollar adding to downward pressure on black gold.
AFP