MTS Help Center

Asian shares dropped on Tuesday on concerns new coronavirus outbreaks in the region could undercut an economic recovery, even as robust momentum in the United States prompts the Federal Reserve to contemplate a quicker exit from accommodative policy.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.15% lower, hovering near recent highs, though momentum has stalled as some countries re-impose lockdowns to contain the spread of the Delta virus variant.

· Growth stock comeback fuels Cathie Wood's ARK funds

A more than 10% surge in growth stocks since the start of the quarter is fueling a comeback in star stock picker Cathie Wood’s ARK funds, which posted some of the worst declines among all U.S. equity funds over the first three months of the year.

The ARK Innovation fund, which is managed by firm founder Wood, gained 3.5% on Monday and is now up 4.3% for the year to date, highlighting a nearly 31% comeback since hitting its May 13 low. Prior to its recent rally, the fund had been down by as much as 9% for the year.

Driving the gains are declining fears of runaway inflation and the failure of U.S. bond yields to follow through on their dramatic first-quarter rally, accelerating a rotation back in to the sort of hyper-growth stocks that helped Wood post the best returns of all actively managed mutual fund managers in 2020 tracked by Morningstar.

· Indian shares fall as financials weigh, relief steps fail to impress

Indian shares edged lower on Tuesday, as financial stocks fell, and economists doubted whether the new loan guarantees announced by the government as relief measures would boost growth.

By 0509 GMT, the blue-chip NSE Nifty 50 index was down 0.30% at 15,767.20 and the benchmark S&P BSE Sensex fell 0.26% to 52,597.28.

· China stocks fall as financial, consumer firms weigh; Hong Kong down

China stocks fell on Tuesday as investors booked profit after a rally, with financial and consumer firms leading the retreat.

The CSI300 index fell 1.3% to 5,185.65 by the end of the morning session, while the Shanghai Composite Index lost 1.0% to 3,572.27.

The retreat came after the blue-chip CSI300 index rose for the fifth straight session on Monday.

The CSI300 financials index declined 1.3%, while the CSI300 consumer staples index dropped 2.1%.

China will make its monetary policy flexible, targeted and appropriate, while keeping interbank liquidity reasonable, the central bank said on Monday, as authorities seek to consolidate a post-COVID-19 economic recovery.

· Japanese shares drop as cyclicals drag, virus worries increase

Japanese shares slumped on Tuesday, with weaker cyclical stocks outweighing gains in technology names, as outbreaks of the highly contagious COVID-19 variant Delta raised concerns about a recovery in the global economy.

The Nikkei share average fell 0.94% to 28,774.35 by 0208 GMT, while the broader Topix lost 0.90% to 1,948,03.

“Investors are selling Japanese cyclical shares after losses in the Dow and European stocks. Since Japan does not have stocks that are equivalent to GAFA shares, the market is not taking advantage of the Nasdaq’s robust finish overnight,” said Soichiro Matsumoto, chief investment officer Japan at Credit Suisse Private Banking.

· Thai stocks drop, Malaysia hits 7-month low

Thai stocks fell more while Malaysian equities tumbled to a seven-month low, leading a selloff across many of southeast Asia’s markets, after the government in Kuala Lumpur extended a nationwide lockdown due to elevated Covid-19 infections.

· Baht, rupiah under pressure as virus woes support dollar

The Thai baht hit its lowest level in over a year on Tuesday. The baht broke the 32 mark against the dollar for the first time since May 2020, as the country battles its worst coronavirus outbreak, which threatens to pile further pressure on the tourism-reliant economy.

· European markets advance as global investors await U.S. data

European stocks advanced on Tuesday as global investors monitored the spread of the delta Covid-19 variant and awaited key economic data out of the U.S.

​

The pan-European Stoxx 600 climbed 0.4% in early trade, with autos adding 0.9% to lead gains as all sectors and major bourses edged into positive territory.

· Homebuilders push FTSE 100 higher, rising COVID-19 cases weigh

London’s FTSE 100 edged higher on Tuesday, led by gains in homebuilders, while rising cases of a new coronavirus variant in Europe and Asia raised fears of a slower economic recovery

The blue-chip FTSE 100 index rose 0.2% with Taylor Wimpey being the top gainer.

· Bank of America increases quarterly dividend by 17%

· Goldman Sachs increases quarterly dividend to $2 per share

· Morgan Stanley doubles its dividend

Morgan Stanley delivered the biggest surprise to investors

however, saying it would double its dividend to 70 cents a share in the third quarter of 2021. Some analysts had been expecting a boost to about 50 cents.

Reference:​ ​ CNBC, Reuters