HONG KONG: A fresh sell-off has hit Asian equities, as concerns over a stronger dollar and rising global interest rates add to pressure on capital flows.
The MSCI Asia Pacific Index dropped as much as 1.7% to its lowest since May 2020 as most sectors were in the red.,
Tech shares led declines, given the sector’s sensitivity to higher borrowing costs and the global economy. Benchmarks in South Korea, Taiwan and Hong Kong fell the most.
The “strong dollar is never good news for Asian markets,” Sanford C Bernstein strategists including Rupal Agarwal wrote in a note.
The region’s currencies were also under pressure, with the won at its lowest in 13 years and the Philippine peso dropping past 57 per dollar for the first time. — Bloomberg