Asian stocks hit 2-year low on rate hike worries

Asian stocks hit 2-year low on rate hike worries

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.8%, falling for a seventh straight session and extending declines to 17% so far this year.







Reuters









May 10, 2022 / 06:40 AM IST





Stocks bounced back from a sharp selloff at the start of the week tied in part to concerns over a default by China's Evergrande and its potential risk to global financial markets. (Representative Image)



Asian shares tumbled to their lowest in nearly two years on Tuesday as investors shed riskier assets on worries about higher interest rates and their impact on economic growth, while the dollar held near 20-year highs.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.8%, falling for a seventh straight session and extending declines to 17% so far this year.

Across Asia, share indexes were a sea of red. The Nikkei lost 0.9%, Australian shares shed 2.5% and Korean stocks lost 2%.

S&P 500 stock futures and Dow Jones futures both fell 0.5% and Nasdaq futures were down 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