Asian stocks mainly declined on Tuesday, along with oil, on concerns that central bank actions to combat inflation will trigger a recession.
Concerns over a new Covid flare-up in China, which are causing discussion of more severe lockdowns, have added to the depressing tone as investors get ready for a big week of data and earnings that could have a significant impact on the markets.
Last week’s US jobs data, which was above expectations, signaled that the world’s largest economy was adjusting to higher Federal Reserve rates, but it also offered the bank greater leeway to continue raising rates, raising worries that it would go too far and trigger a contraction.
Tokyo, Shanghai, Hong Kong, Seoul, Wellington, Taipei, and Jakarta all experienced declines in early Asian commerce, whereas Sydney and Singapore grew somewhat.
The crude market was also impacted by bets on a potential recession decreasing demand, with both major contracts extending Monday’s losses.
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