Asian shares slide after Wall Street frets over rate hike consequences

HONG KONG : Asian shares tumbled on Friday while the U.S. dollar and Treasury yields rose in a reversal of a day earlier after investors expressed concerns that rising interest rates could hurt global economic growth.

This was a reversal of the situation 24 hours earlier when Asian shares opened higher after the S&P 500 had recorded its biggest one-day percentage gain in nearly two years on Wednesday. "Risks remain elevated for a policy mistake – either by not tightening quickly enough to combat inflation or being overly hawkish, resulting in the end of the current business cycle," said David Chao, global market strategist, APAC ex-Japan, at Invesco.

A firm commitment by Chinese leaders to maintain a zero-COVID strategy raised fears about the health of the country's economy, while the ongoing war in Ukraine is also hurting sentiment toward risk.China's yuan traded offshore tumbled to an 18-month low of 6.7338 per dollar.

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