Asian Stocks Drop as Strong Dollar & China Weigh – Asia Market Wrap

Asian shares fell Thursday, as the Dollar’s continued gain and weakness in China weighed on the region’s risk appetite. Japanese stocks rose as the Yen plummeted.

The MSCI Asia Pacific Index fell as much as 0.5%, with shares in China and Taiwan falling while those in Australia rose. Hong Kong equities fell on weak volumes as the market remained open despite warnings of severe weather. In Asian trading, the Dollar index surged roughly 0.2% to a two-year high, while the 10-year US Treasury yield increased for the third consecutive day. US stock futures declined.

Assets in the area have fallen since the US election as investors weigh the implications of Trump’s proposed tariff policies on regional economy, while the rising Dollar puts pressure on the region’s currencies. The MSCI Asia stock index is on track for its worst week since April.

The Yen sank further against the Dollar, reaching its lowest level since July. The collapse has sent the Yen back to levels seen when Japanese officials last intervened to support its currency, with the country’s top foreign exchange official warning about the one-sided, abrupt movements.