Asia Stock Outlook Worsens as Downturn Fears Grow, Analysts Say
- Risk aversion likely to prevail again this week: Shinkin Asset
- Aussie dollar could soon come under severe strain: IG Markets
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The outlook for Asian stocks is deteriorating as the worse-than-expected US payrolls report on Friday undermined earlier optimism over a soft landing for the US economy, analysts say.
Shares in technology-heavy markets such as Japan and South Korea may suffer due their close correlations with the global economic outlook, said Hebe Chen, an analyst at IG Markets Ltd. in Melbourne. The yen is set to gain from an increase in risk aversion, though it’s unlikely to strengthen as far as 140 per dollar, said Jun Kato, chief market analyst at Shinkin Asset Management Co. in Tokyo.