Asian stocks tumbled to the 2-month low as investors factoring in Delta variant and interest rate hikes

Asian shares this morning tumbled to a nearly two-month low and seem to be set for the worst weekly performance since February. Volatility in the market is probably because investors are factoring in multiple considerations. For one, the Delta variant is affecting larger regions by now and some analysts are worried that it might threaten global recovery. For two, the current fast recovery might push more and more central banks to raise interest rates earlier than expected, which would harm the equity market.

US consumer credit has surged in May, rising by 10% on an annualized basis. Sales on houses and motor vehicles have been robust in both April and May, leading to increased borrowing. The figures have shown a greater level of consumer confidence along with employment. USD is still trading at its high level, at around 92.47.