(Reuters) – Asian equities were set to slump on Thursday after the head of the Federal Reserve warned of a “significantly worse” U.S. recession than any downturn since World War Two because of coronavirus pandemic fallout, sentiments that drove bonds higher on a safety bid.
FILE PHOTO: A man wearing a protective mask is seen inside the Shanghai Stock Exchange building, as the country is hit by a new coronavirus outbreak, at the Pudong financial district in Shanghai, China February 28, 2020. REUTERS/Aly Song
Fed Chair Jerome Powell on Wednesday issued his sober review of an economy slammed by a record pace of job losses and bracing for worse ahead as most U.S. states moved toward reopening following lockdowns aimed at curbing the spread of the virus.
Hong Kong’s Hang Seng index futures .HSI .HSIc1 slipped 0.92%, Australian S&P/ASX 200 futures fell 1.07%, while Japan’s Nikkei 225 futures rose 0.05%.
“We’re picking up from what was a negative session in offshore markets – New York in particular,” said Ray Attrill, head of foreign exchange strategy for National Australia Bank in Sydney.
A pushback against Powell’s “downbeat assessments” ab