{"id":1661189,"date":"2022-09-27T22:50:10","date_gmt":"2022-09-28T02:50:10","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1661189"},"modified":"2022-09-27T22:50:46","modified_gmt":"2022-09-28T02:50:46","slug":"asia-markets-spooked-by-recession-risks-dollar-climbs","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/asia-markets-spooked-by-recession-risks-dollar-climbs\/","title":{"rendered":"Asia markets spooked by recession risks, dollar climbs"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fasia-markets-spooked-by-recession-risks-dollar-climbs%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1661189&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Wayne Cole<\/p>\n<p>SYDNEY (Reuters) \u2013     Asian share markets slid on Wednesday as surging borrowing costs fed fears of a global recession, spooking investors into the arms of the safe-haven dollar and driving the Chinese yuan to record lows.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>MSCI\u2019s broadest index of Asia-Pacific shares outside Japan fell 1.7% to its lowest since April 2020 as selling swept across emerging markets.<\/p>\n<p>Japan\u2019s Nikkei shed 2.1% and South Korean stocks fell 2.4% to a two-year low. Chinese blue chips lost 0.6%.<\/p>\n<p>After a steady start, S&#038;P 500 futures got caught in the bearish mood and slipped 0.8%, while Nasdaq futures dropped 1.0%. EUROSTOXX 50 futures fell 0.8%, while FTSE futures lost 0.9%.<\/p>\n<p>\u201cIt is now clear that central banks in advanced economies will make the current tightening cycle the most aggressive in three decades,\u201d said Jennifer McKeown, head of global economics at Capital Economics. \u201cWhile this may be necessary to tame inflation, it will come at a significant economic cost.\u201d<\/p>\n<p>\u201cIn short, we think the next year will look like a global recession, feel like a global recession, and maybe even quack like one, so that\u2019s what we\u2019re now calling it.\u201d<\/p>\n<p>Shaking investor confidence has been the collapse in sterling and UK bond prices, which could force some fund managers to sell other assets to cover resulting losses.<\/p>\n<p>Adding to the risk of yet higher interest rates, the chief economist at the Bank of England said the tax cuts would likely require a \u201csignificant policy response\u201d.<\/p>\n<p>Moody\u2019s on Tuesday warned the UK government that large unfunded tax cuts were \u201ccredit negative\u201d and could undermine the government\u2019s fiscal credibility.<\/p>\n<p>George Saravelos, global head of FX strategy at Deutsche Bank, said investors now wanted more to finance the country\u2019s deficits, including a 200-basis-point rate hike by November and a terminal rate up at 6%.<\/p>\n<p>\u201cThis is the level of risk premium that the market now demands to stabilize the currency,\u201d said Saravelos. \u201cIf this isn\u2019t delivered, it risks further currency weakening, further imported inflation, and further tightening, a vicious cycle.\u201d<\/p>\n<p>Sterling was under fire again at $1.0660, as the bounce from Monday\u2019s record trough of $1.0327 stopped far short of the $1.1300 level held before last week\u2019s UK Budget.<\/p>\n<p>Yields on British 10-year gilts have risen a staggering 119 basis points in just four sessions to reach 4.50%, the sharpest such move since at least 1979. [GBP\/]\n<p>The safe-haven dollar has been a major beneficiary from the rout in sterling, rising to a fresh 20-year peak of 114.520 against a basket of currencies.<\/p>\n<p>The dollar edged back up to 144.74 yen, testing the resolve of the Japanese authorities to protect the 145.00 level after last week\u2019s intervention.<\/p>\n<p>The euro slipped anew to $0.9552 and back toward last week\u2019s two-decade low of $0.9528. The dollar also touched a record high on the Chinese yuan at 7.2088, having risen for eight straight sessions.<\/p>\n<p>The mounting pressure on emerging market currencies from the dollar\u2019s rise is in turn adding to risks that those countries will have to further lift interest rates and undermine growth.<\/p>\n<p>The ascent of the dollar and bond yields has also been a drag for gold, which was hovering at $1,624 an ounce after hitting lows not seen since April 2020. [GOL\/]\n<p>Oil prices fell again as crude storage builds and the strong dollar offset support from U.S. production cuts caused by Hurricane Ian. [O\/R]\n<p>Brent fell $1.02 to $85.25 a barrel, while U.S. crude lost 93 cents to $77.57 per barrel.<\/p>\n<p> (Reporting by Wayne Cole; Editing by Shri Navaratnam)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/asia-markets-spooked-by\/attachment\/a-man-on-a-bicycle-stands-in-front-of-an-2\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8R02S-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8R02S-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Wayne Cole SYDNEY (Reuters) \u2013 Asian share markets slid on Wednesday as surging borrowing costs fed fears of a global recession, spooking investors into the arms of the safe-haven<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1661189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1661189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1661189"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1661189\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1661189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1661189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1661189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}