Asian markets moved in different directions Monday after a technology-led selloff pushed U.S. Stocks sharply lower and drove a steep rise in market volatility.
The CBOE Volatility Index climbed about 30% to above 21, its highest level in more than four months, amid market rumors that a major hedge fund had collapsed. The supplied reporting did not confirm the rumor. Investors were also weighing inflation concerns, higher energy costs and the economic effects of conflicts in the Middle East and Eastern Europe.
Trading across Asia reflected that uncertainty.
The data presented a mixed picture of continued growth alongside weaker utilization and still-soft domestic demand.
Commodities added another layer to the market response. Gold rose above $4,170 an ounce after dovish remarks from Federal Reserve Chair Kevin Warsh reduced expectations of an October rate hike. Oil slipped below $101 a barrel but retained most of the previous week’s 10% gain as the conflicts in the Middle East and Eastern Europe heightened concerns about supply. In Australia, Reserve Bank Assistant Governor Christopher Kent said rising global neutral interest rates raised questions about how restrictive monetary policy was, despite four rate hikes this year.