Market mood shifts to benefit bonds and USD, stocks tumbled

Asian shares tumbled this morning as market sentiment shifts to risk aversion, which benefits bonds and dollars. Hong Kong stocks shed nearly 0.9% to its six-month low, Japan’s Nikkei slipped roughly 1.1%, and APAC markets excluding Japan also fell by about 0.6%. Chinese stocks listed in the US fell sharply after the government announced several censorships against major tech companies, including Didi Global Inc, which provides ride-sharing services in China. Didi’s stock fell more than 20% after the announcement.

As global markets remain quite volatile recently, investors are keenly waiting for minutes from the Fed which could signal some direction in US monetary policy. The just-released non-manufacturing activity index in the US shows that growth has slowed down from May. The Index fell from 64 to 60.1, but it is still at a relatively high level.