Asian shares poised to slide as surprise Fed cut fails to halt rout

Asian shares struggle for traction as Fed cut fails to boost confidence

SINGAPORE - Asian shares were poised to drop on Wednesday and bonds soared, after an emergency rate cut from the U.S. Federal Reserve was unable to quell investor fears over the coronavirus’s widening fallout.

Wall Street indexes fell sharply overnight, gold surged and the dollar sank after the Fed’s surprise cut of the federal funds rate by a half percentage point. In Asia, Australia’s S&P/ASX 200 index fell 1.4% in early trade. Nikkei futures NKc1 traded in negative territory and e-mini futures for the S&P 500 ESc1 fell 0.4%. Trade in Treasury futures implied a yield of 0.86% on U.S. 10-year paper TYc1.“The market reaction to the Fed’s decisive action is worrying for investors,” said Michael McCarthy, chief market strategist at brokerage CMC Markets in Sydney.

More than 3,000 people have been killed by the coronavirus, about 3.4% of those infected - far above seasonal flu’s fatality rate of under 1%.

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