Asian shares plunge on safe haven bid

Asian share markets reached low grounds on Wednesday. This came after coronavirus lockdowns in Europe and potential U.S. tax hikes dragged investors’ appetite, prompting them to resort to safe havens.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.1% lower, dropping further after a 0.9% decline seen on Tuesday. After five consecutive months of gains, the index performed weakly in March as inflation fears took a toll on risk assets.

Japan’s Nikkei shed 1.8, while South Korea’s KOSPI fell 0.5%. Chinese shares continued their downswing, with the blue-chip CSI300 index tallying a 1.2% loss. In Hong Kong, the Hang Seng index had seen a 1.7% decline.

Investors’ subdued sentiment could be attributed to Europe’s implementation of coronavirus measures, with some risk reduction in the EM space prompting investors to bet on safer equities.