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Asian shares post worst first-half performance in 5 years

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Reuters
Last Updated : Jul 02 2018 | 4:25 PM IST

(Reuters) - Asian stocks declined sharply in June amid higher global bond yields and mounting China-U.S. trade friction that threatened global economic growth.

In the first half of 2018, the MSCI Asia-ex-Japan index fell 5.4 percent, marking its biggest drop in five years. The Asian markets saw a similar dismal performance in 2013 when the U.S. Federal Reserve said it would unwind its monetary easing policy, stoking a broad sell-off in regional markets.

Trade tensions between two of the world's biggest economies - the United States and China - escalated last month keeping Asian markets on the edge.

The United States has threatened to impose duties on up to $450 billion of Chinese imports, with the first $34 billion portion set to go into effect by July 6 deadline.

Chinese stock markets dropped about 8 percent in June, posting their biggest decline in 29 months. China's yuan was trading near a seven-month low on Monday as investors took a cautious stance amid a widening trade conflict.

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Thailand and Hong Kong stocks saw a sharp decline in June, while New Zealand shares ended 3.3 percent higher last month.

New Zealand, India and Australia stocks have the highest price-earnings ratio based on 12-month forward earnings in the region, according to Thomson Reuters Eikon data.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Sherry Jacob-Phillips)

Disclaimer: No Business Standard Journalist was involved in creation of this content

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First Published: Jul 02 2018 | 4:18 PM IST

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