Asian stocks look set to fall Thursday after a sharp reversal in U.S. shares on concerns about risks from the omicron strain and as Jerome Powell reiterated a pivot toward potentially tapering stimulus more quickly.
Australian equities dropped and futures for Japan and Hong Kong pointed lower, while U.S. contracts edged up. The S&P 500 posted its worst two-day selloff since October 2020 after erasing a near-2% rally to slide into the close. The technology-heavy Nasdaq 100 underperformed.
Markets were jolted by the first confirmed U.S. case of the new variant, whose emergence has brought fresh challenges for economic reopening. At the same time, Federal Reserve Chair Powell reiterated officials should consider a quicker reduction of monetary stimulus amid elevated inflation.
The 30-year Treasury yield fell to its lowest level since January. Risk aversion bolstered the dollar. An index of Chinese shares traded in the U.S. slid as Beijing’s plan to close a loophole tech firms use to list abroad hit sentiment.
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