Asian stocks fell Friday as the fast-spreading delta virus strain stoked concerns about economic growth and China’s regulatory curbs sapped sentiment. The dollar was firm and commodities trimmed a weekly drop.
MSCI Inc.’s Asia-Pacific gauge was at the lowest since December. Shares slid in China and Hong Kong — Alibaba Group Holding Ltd. hit another record low — as Beijing cracks down on private industry.
The latest step against big tech is legislation setting out tougher rules for handling user data. State media also scrutinized liquor makers, online pharmacies and cosmetics firms. U.S. equity futures dipped after modest overnight S&P 500 and Nasdaq 100 gains during choppy trading. Treasuries held a climb and the dollar was around a nine-month high.
Commodities stabilized but their recent slump is flashing a warning about the impact of Covid-19’s resurgence on the global recovery. The delta strain is stoking doubts about achieving herd immunity to underpin economic reopening, just as Chinese activity slows and the Federal Reserve eyes a gradual reduction of emergency stimulus.
That mix puts global stocks and commodities on course for one of their worst weeks this year. Analysts cautioned that options expirations due Friday may be fueling volatility.
