(Reuters) - Asian shares posted their biggest drop in three months in August, as escalating Sino-U.S. trade tensions and fears of a global recession prompted investors to sell riskier assets.
The MSCI's broadest index of Asia-Pacific shares, .MIAP00000PUS fell 3.4% last month, its worst decline since May.
(Graphic: Asia monthly price change Aug 2019, )
The United States and China announced new tariffs on each other’s products in August after a brief truce.
Also, yields on 10-year U.S. Treasury notes US10YT=RR fell below the two-year yield US2YT=RR briefly, stoking further fears of a potential recession. An inverting yield curve is seen as a leading indicator of an impending economic recession.
Regional shares were also let down by a lacklustre earnings performance by Asian firms in the second quarter. Refinitiv data showed 55% of Asian firms missed their consensus earnings estimates in the June quarter.
(Graphic: Asian companies Q2 earnings miss, )
All of Asia’s equities markets made losses last month.
(Graphic: Asia Pacific equities performance in 2019, )
Reporting by Gaurav Dogra and Patturaja Murugaboopathy Bengaluru; Editing by Kim Coghill
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