SYDNEY, June 29 (Reuters) – Asian shares edged lower on Tuesday on concerns new coronavirus outbreaks in the region could undercut an economic recovery even as robust momentum in the United States prompts the Federal Reserve to contemplate a quicker exit from accommodative policy.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was 0.11% lower, hovering near recent highs, though momentum has stalled as some countries re-impose lockdowns to contain the spread of the Delta virus variant.
Australian and Japanese shares took the brunt of early losses, with the ASX/200 index (.AXJO) down 0.76% and the Nikkei (.N225) falling 0.91%. The South Korean (.KS11) market was 0.39% lower, and Chinese stocks (.SSEC) were also down 1.06%.
Fears over the spread of the highly infections Delta virus variant have dented sentiment at a time markets remain on edge after the Fed shocked traders with a hawkish tilt earlier this month.