MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.6 percent, with analysts preparing for a 2.4 percent weekly loss, its biggest sin
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.6 percent, with analysts preparing for a 2.4 percent weekly loss, its biggest since April.
Japan’s Nikkei dropped one percent and Hong Kong’s Hang Seng fell 1.8 percent.
This comes amid a five percent plunge on the tech-heavy Nasdaq overnight or the S&P 500’s 3.5% drop.
Those were the steepest Wall Street losses since June, but traders said a correction was overdue given recent frothy gains.
“It was steady rather than panic selling throughout,” said ING’s regional head of research Rob Carnell.
“It just doesn’t sound or feel like anything other than a bit of profit taking…if this was a massive risk-off move, you’d have expected the dollar to rally, and it didn’t really.”
US payrolls figures due later today are seen as a possible selling trigger if it disappoints economists’ expectations that some 14 million jobs were created in August.
The dollar was steady, but a drop in the euro over last few days on talk that the European Central Bank is concerned about its strength had the greenback eying its best week in more than two months against a basket of currencies.
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