Asian stocks dip as greenback strengthens
On Thursday, Asian stocks tumbled when the greenback managed to strengthen against regional currencies.
Japanese Nikkei Stock Average slumped 0.4%, Korean Kospi decreased 0.6%, Australian S&P/ASX 200 descended 1.3%.
Meanwhile, Chinese Shanghai Composite Index went down 1%, the Hang Seng Index dropped 0.9%.
The surging American dollar was applying pressure on Asian currencies and stocks. Overnight the greenback dared to gain against a bunch of key currencies right after James Bullard, the President of St. Louis Federal Reserve Bank hinted that there was a real chance that in April interest rates could be increased.
It’s not surprising this hawkish tone powered bullish sentiment on the greenback, which appeared to be strong enough against Asian currencies during the early trading session amid descends in commodity and crude prices. Moreover, commodity and energy related stocks dipped in the morning too.
Market participants were also cautions ahead of Easter and Good Friday holidays. Stock markets in Australia, Hong Kong, Indonesia, Singapore and New Zealand will close on Friday.