SYDNEY- Asian equities declined on continued investor concern about the impact of American tariffs on the global economy. The euro slid after initial results from the Italian election suggested a hung parliament.
From Tokyo to Sydney, were the steepest drops seen in Hong Kong, with materials, industrial and energy shares under-performed.
Shares in Shanghai outperformed, as China kept their targeted growth at 6.5%, as the US dollar strengthened as treasury gains declined.
The euro weakened against the greenback as Italy’s anti-establishment groups surged in Sunday’s election. The Euro did gain on the news that Germany’s the Social Democrats backed a government coalition with Angela Merkel’s Christian Democrat-led bloc.
Frank Benzimra, head of Asia equity strategy at Societe Generale SA in Hong Kong, said there is a, “lot of politics this week with Italy elections and NPC in China, also trade measures, he added, “The return of volatility we have seen since the end of January will probably remain.”
Oil did climb as geopolitical risk returned, Libya’s biggest crude field halted by speculation that the supply will tighten and help reduce a global over the access of supply.
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