Sydney — Asian shares skidded on Tuesday as a strong dollar sapped demand for emerging-market assets while surging oil prices stoked concern about a flare-up in inflation and faster US interest rate increases. Japan’s Nikkei was mostly flat while Australian shares fell 0.9%. Chinese shares weaker, with the blue-chip CSI300 off 0.7%. Liquidity was relatively thin due to holidays in South Korea and Hong Kong. MSCI’s broadest index of Asia-Pacific shares outside Japan was just a shade higher at 568.4 points, but well below an all-time peak of 617.12 hit in January. "We are seeing US dollar strength and that is causing money to flow out from emerging markets to the US There is some sort of risk aversion going on," said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management. "People are cautious about taking exposure in emerging markets." The concern offset the boost to sentiment from overnight gains on Wall Street over the apparent reconciliation between the US and Chi...
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