On Thursday , Asian shares braced for more volatility as eye-catching easing by central banks stoked fears of global recession, driving U.S. yields to near-record lows and lifting gold past $1,500 for the first time since 2013.
Early Thursday, Asian share markets were wobbly, as investors tried to find their footing after enduring a string of heavy losses.
There was much relief that Wall Street had managed a late come back overnight, so that the Dow ended with a loss of just 0.09% having been down 500 points at one stage.
Ten-year yields dropped further below three-month rates, an inversion that has reliably predicted recessions in the past.
The latest spasm began when central banks in New Zealand, India and Thailand surprised markets with aggressive easing, while the Philippines is expected to cut later Thursday.
Chicago Fed President Charles Evans signaled on Wednesday he was open to lowering rates to bolster inflation and to counter risks to economic growth from trade tensions.
Dire data on German industrial output stoked concerns Europe might already be in recession and pushed bund yields deeper into negative territory.
All of which fueled speculation that the major central banks would also have to take drastic action, if only to prevent an export-crimping rise in their currencies.
The Bank of Japan would be under particular pressure as its yen has gained sharply from the flood to safe havens, leaving it at 106.10 per dollar from 109.30 just a week ago.
The euro has also bounced to $1.1210, from a two-year trough of $1.1025.
The U.S. dollar index has backtracked to 97.595, from a recent peak of 98.932.
The kiwi was huddled at $0.6447 having shed 1.3% for the week so far.
Oil prices were attempting a recovery as talk that Saudi Arabia was mulling options to halt crude’s descent helped offset a build in stockpiles and fears of slowing demand.
Brent crude futures climbed $1.20 to $57.43, though that followed steep losses on Wednesday, while U.S. crude rose $1.23 to $52.32 a barrel.
Spot gold was last at $1,510 per ounce. The precious metal has surged 16% since May as the worsening Sino-U.S. trade dispute sparked a rush to safe havens.
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