Asian shares drop amid fears over Chinese regulations
Asian shares fell on Thursday as concerns over Chinese regulatory changes and the spread of the coronavirus’ Delta variant took a toll on investor sentiment. In addition to this, the US Fed would rush to reduce support despite easing worries about US inflation.
MSCI’s broadest index of Asia-Pacific shares outside Japan suffered a 0.51% drop in early trading, weighed down by Chinese blue chips’ 0.79% plunge and a 0.54% decline in the Hong Kong benchmark.
Among the largest decliners was China’s ZhongAn, an online insurer, which plummeted 13.47% after the country’s state media stated that China’s banking and insurance regulator would increase scrutiny of the country’s online insurance companies.
Meanwhile, Japan’s Nikkei made a 0.35% gain, heading for a fifth straight session of gains, boosted by solid earnings of the country’s domestic companies.
Across the Pacific, US stock futures remained largely unmoving, with S&P 500 e-minis dipping 0.05%, while the pan-region Euro Stoxx 50 futures inched down .01%.
In other news, the dollar remained below a four-month peak against other major currencies, after falling overnight as yields dropped.