Asian stocks poised to fall after Powell reiterated stimulus pivot

Asian stocks are poised to fall Thursday after a sharp reversal in U.S. shares on concerns about the omicron strain and as Jerome Powell reiterated a pivot toward possibly tapering stimulus more quickly.

None of China Cash Flowed Through the Congo Bank to Former President's Cronies

After erasing a near 2% rally in October 2020, the S&P 500 posted its worst two-day selloff since October 2020. The technology-heavy Nasdaq 100 was underperformed.

Markets were jolted by the first confirmed U.S. case of the new variant, whose emergence has brought new challenges for economic reopening. At the same time, Federal Reserve Chair Powell reiterated that officials should consider a quicker reduction of monetary assistance due to elevated inflation.

The 30 year Treasury yield fell to its lowest level since January. The dollar was boosted by risk aversion. An index of Chinese shares traded in the U.S. fell as Beijing s plan to close a loophole tech firms used to list abroad hit sentiment.

The omicron variant threatens to impede the recovery, so investors are bracing for volatility in financial markets to continue through December, which is caused by tightening central bank policies to fight inflation.

Kim Mundy, a strategist at the Commonwealth Bank of Australia, wrote in a note that the omicron variant is the number one uncertainty facing the U.S. economic outlook.

The Fed said in its Beige Book survey that the U.S. economy grew at a modest to moderate pace through mid-November, while price hikes were widespread amid supply-chain disruptions and labor shortages.

South Africa said it had doubled its cases on the Covid front from Tuesday. The new strain was found in the U.K., Switzerland and Brazil. The World Health Organization s chief scientist said vaccines will likely protect against severe cases of the variant. Many questions about the strain remain unanswered.

Crude oil was advanced as traders waited for an OPEC meeting to discuss output. The gold rebounded, and the price ofBitcoin was about $57,160.

You can read more market analysis on our MLIV blog.

Some of the biggest moves in markets are:

All S&P 500 futures rose by 0.2% as of 8: 16 a.m. in Tokyo. The S&P 500 fell 1.2%.

The Japanese yen was at 112.91 per dollar.

The offshore yuan was at 6.3725 per dollar None The yield on 10 year Treasuries fell four basis points to 1.40%

None of the Gold was at $1,782. 70 an ounce

None Charlie Penner, the Investor Reshaping Exxon From the Inside