Asian Equites Hit Lowest in Two Years as Growth Worries Mounts

Asian shares hit the lowest in two years on worries about higher interest rates and slowing economic growth globally.

Shares in Mainland China is moderately high while Hong Kong, South Korea, Thailand and Japan inched down sharply. The MSCI Broad Market Index ex Japan inched down by 1.66%.

U.S. futures S&P500 and Dow Jones fell 0..5% each while Nasdaq down by 0.6%.

“The idea of a benign and gentle tightening cycle has evaporated,” ANZ analysts said in a report.

“The reality is that the Fed cannot control the supply side of the economy in the short-run, so as long as key indicators like the labour force participation rate stay low and Chinese exports slow, the risk to inflation, and therefore interest rates, lies to the upside,” ANZ said.

Crude oil dipped on demand worries with WTI trading around $101 a barrel and the Brent trading around $104 a barrel.