Asian shares hit fresh one-year lows in early trading yesterday, while oil and precious metal prices also tumbled as Turkey’s currency crisis and fears of an economic slowdown in China fanned worries about global growth.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.0 percent, while Japan’s Nikkei and the Australian benchmark dropped 1.2 percent and 0.4 percent, respectively.
Chinese stocks continued to sag, with the Shanghai Composite Index and Hong Kong’s Hang Seng index shedding 1.1 percent and 0.9 percent.
Oil prices took an additional hit after data showed a surprise weekly increase in US crude stockpiles, compounding worries about a weaker global economic growth outlook.
US crude oil fell to two-month lows, falling 0.6 percent in early Asian trade to as low as $64.42 per barrel, after Wednesday’s 3.2 percent fall.
Spot gold dropped 1.0 percent to $1,162.31 an ounce in early Asian trade on Thursday, hitting its lowest levels since January last year.
Copper lost 4.0 percent to $5,801.00 a tonne and zinc fell 6.3 percent, touching its lowest level since October 2016 on Wednesday.
The escalation in global trade tensions continued to weigh on sentiment with Beijing lodging a complaint to the World Trade Organization to determine the legality of US tariff and subsidy policies.
Turkey also raised tariffs on some US products in response to Washington’s levies.