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Greenback Starts Big Week Softer
The price action in the foreign exchange and bond markets has been consistent with the risk-off narrative, spurred arguably by the surge in Delta mutation of the virus. However, equity markets were less consistent with it. Last week's weakness in the MSCI Asia Pacific Index seemed to be partly driven by Beijing's crackdown on some tech companies and private sector education companies. The benchmark fell by 1.9% last week and continued to be sold today, led by Hong Kong's 4%+ drop and Shanghai's 2.3% decline. Only Japan of the large bourses posted modest gains after coming back from a two week holiday. However, the ... (full story)