Asian shares drop due to Delta variant scare

Data suggests that Asian shares were down by 10%. Morgan Stanley Capital International (MSCI) index indicated that Asia-Pacific shares outside Japan dropped 0.25% in early trading while the Hong Kong benchmark fell 0.2%.

Asian shares dropped considerably on Thursday due to fear about the spread of the delta variant of coronavirus. The share crash came at a time when Joe Biden said that he trusts Federal Reserve to take any steps that may be needed to rein in prices, Reuters reported.

Data suggests that Asian shares were down by 10%. According to Reuters, Morgan Stanley Capital International (MSCI) index indicated that Asia-Pacific shares outside Japan dropped 0.25% in early trading while the Hong Kong benchmark fell 0.2%.

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Asia’s share drop situation contrast with the rest of the world. On Wednesday, MSCI’s all-country index hit a record high. 

Daniel Lam, the senior cross-asset strategist, Standard Chartered Wealth Management, told Reuters, “The money is just in the U.S. and European markets right now, and that’s our preferred market too.”

According to David Chao, Global Market Strategist, Asia Pacific (ex-Japan) at Invesco, “The APAC region’s zero-tolerance policy coupled with a relatively low vaccination rate has led to vicious lockdown-release cycle which could continue for a while.”

Asian shares dropping also caused the dollar to retreat against most major currencies. As reported by Reuters, U.S. crude dipped 0.03% to $69.23 a barrel. Brent crude was flat at $71.43 per barrel. Gold prices dropped 0.1% on Thursday.