Asia Stocks Suffer Limited Losses As Us Dollar, Bonds Buckle

Asia stocks battled to hold ground today after a furious flight from United States US assets undermined Wall Street and the dollar, while concerns about the independence of the Federal Reserve piled fresh pressure on Treasuries.

Relatively limited losses in Asia did spark talk that funds could be reallocating money to equities in the area, though the impact of tariffs on economic growth remained a major drag.

President Donald Trumps increasingly vocal attacks on Fed Chair Jerome Powell for not cutting interest rates saw Wall Street indexes shed around 2.4 on Monday and the dollar hit three-year lows.

The sell America trade was in full flight, said Tapas Strickland, head of market economics at NAB.

Whether or not President Trump is legally able and willing to move against the Fed, the jousting underscores the loss of US exceptionalism and the very real policy risk for investors.