Asian shares on Friday were headed for the worst month since the onset of the COVID-19 pandemic. Jitters in currency and bond markets persisted over hawkish talk from central banks, worries about a global recession, and rising geopolitical risk.
Relief came from Chinese factory activity data that beat market expectations, with the manufacturing sector returning to growth in September. The UK’s Prime Minister said she will stick to her plan to reignite economic growth, breaking her silence after nearly a week of financial market chaos.
Germany’s Chancellor set out a 200 billion euro ($196 billion) “defensive shield”, including a gas price brake and a cut in sales tax for fuel. U.S. Treasuries stabilised somewhat after a renewed bout of selling on hawkish talks from Federal Reserve officials.