Asian shares drop amid descending US rate-hike hopes
On Monday, shares of Hong Kong and Japan sank as market participants dialed back their hopes for higher American interest rates. Meanwhile, in Australia high commodity prices managed to buoy stocks.
The Nikkei Stock Average descended 0.3%, while the Hang Seng Index dipped 0.1%.
The Shanghai Composite Index lost 0.5%, while the Australian benchmark S&P ASX 200 acquired 0.7%.
Weakness in some Asian markets arose right after Friday’s American jobs report generated doubt as for a probability of higher American interest rates within next months. In May, American employers gained up to 38,000 jobs, perhaps, the lowest value for up to five years.
While the probability of further delays in raising American interest rates could be positive for money flows into risky assets, such as Asian shares, for instance, the jobs report also drove concerns that the American economic recovery has already gone off track.
Friday’s disastrous American nonfarm payrolls release has just killed off any probability of a June rate lift.