Asia shares edge up, sentiment fragile on China growth fears

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Asia shares edge up, sentiment fragile on China growth fears dollar asianshare

MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.8%, helped by China’s blue chip index adding 0.33%, after its worst day in two years on Monday. Hong Kong’s benchmark Hang Seng Index also bounced 0.6%.

The nervousness about China's economic slowdown hit Australian shares in early trade, with the local benchmark down 1.78%, hurt particularly by declines in miners .The stringent lockdown in China, and its proliferation as cases spread to other big cities like Beijing, is weighing on the economic growth outlook and investment sentiment, said Manishi Raychaudhuri, Asia-Pacific equity strategist at BNP Paribas.

On top of the China lockdown worries, markets have also been fretting that an aggressive pace of Fed tightening could derail the global economy, which has only just started to recover from the COVID-19 pandemic hit.Lockdown in China’s financial hub Shanghai has dragged into a fourth week, as authorities stick to their “dynamic zero-Covid” policy to combat the latest outbreak of Omicron cases.

That helped it recover from a year-low of 6.609 per dollar on Monday, hurt by fears about China's economic growth.

 

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