Asian stocks dwindle as global growth fears overshadow strong tech earnings
Asian shares recorded a turbulent session on Friday as weak economic data from the United States and surging coronavirus infections worldwide dragged market confidence. The decline followed despite upbeat U.S. tech gains and signs of rebound in China and Japan’s manufacturing activities.
MSCI’s broadest index of Asia-Pacific shares outside Japan erased initial earnings after dropping 0.22% in late morning trade. Australian shares recorded a 1.85% decline as South Korea’s Kospi shed 0.2%.
Japan’s benchmark index Nikkei tallied a 1.8% drop after a stronger yen hit exports. Chinese blue-chips plunged 0.29% in choppy trade.
The second quarter had seen the United States’ gross domestic product recording an annualized 32.9% contraction rate. The country also reported an increase in unemployment claims, highlighting a slowing economic recovery. The weak figures completely dragged positive manufacturing data from China and Japan.