Asian shares find relief after China-led losses

Asian shares found respite on Thursday following this week’s sharp losses due to the economic situation in China. Meanwhile, the U.S. dollar hit an over one-year high against major peers, boosted by demand for the currency’s safe haven and expectations for tighter U.S. monetary policy.

MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.06%.

In Japan, the Nikkei dropped 0.36% following the election of the soft-spoken consensus builder Fumio Kishida as the ruling party’s leader and the country’s new prime minister.

Asian shares took a heavy blow on Wednesday, as concerns over economic growth in China due to a worsening power crunch combined with fears of a global slowdown.

 Chinese blue chips added 0.5% following the publication of data on Thursday showing China’s services sector returned to expansion in September after COVID-19 outbreaks receded.

However, the country’s factory activity shrank as high raw material prices and power cuts exerted pressure on manufacturers.

Another factor dragging down investor sentiment in China was the heavily indebted China Evergrande, with its shares constantly going up and down and was last down 2%.