* Pressure remains on bitcoin, cryptos after crash<\/p>\n
* MSCI AxJ index wobbles lower; dollar holds gains<\/p>\n
* Commods drop as China vows crackdown on speculation<\/p>\n
SINGAPORE, May 20 (Reuters) – Stock markets struggled for traction on Thursday after a jittery session on Wall Street where cryptocurrencies crashed and a hint of tapering talk from the U.S. Federal Reserve drove selling in the bond market and lifted the safe-haven dollar.<\/p>\n
Benchmarks in South Korea and Japan were either side of flat in morning trade and Hong Kong\u2019s Hang Seng fell about 0.8% to pull MSCI\u2019s broadest index of Asia-Pacific shares outside Japan down by 0.2%.<\/p>\n
Bitcoin, which plunged as much as 30% to $30,000 overnight, was struggling for support around $36,000. U.S. stock futures wobbled just below flat.<\/p>\n
Commodities also fell, Treasuries nursed losses while the dollar held overnight gains.<\/p>\n
Fed minutes published on Wednesday said \u201ca number\u201d of officials thought that if the recovery holds up, it might be appropriate to \u201cbegin discussing a plan for adjusting the pace of asset purchases\u201d.<\/p>\n
\u201cThis is very much the market view, really,\u201d ING economist Rob Carnell said on the phone from Singapore, with traders expecting strong hints over summer that the taper is coming and that policy support could start to ease in December.<\/p>\n
\u201cThis is taking us to where we think we\u2019re going to go, and perhaps this removes a little bit of uncertainty around that – so you get a slight increase in bond yields and the dollar rallying a little bit.\u201d<\/p>\n
The yield on benchmark 10-year U.S. Treasuries rose 4.1 basis points overnight to 1.6830% and dipped to 1.6676% early in Tokyo trade. The dollar scraped itself off a four-month low to hover around $1.2183 per euro.<\/p>\n
The dollar also rose through its 20-day moving average against the yen, Aussie and kiwi. It last bought 109.17 yen and the dollar index was last at 90.149.<\/p>\n
On Wall Street overnight the S&P 500 closed 0.3% lower and the Nasdaq was flat, something of a recovery after each dropped more than 1.6% during the session.<\/p>\n
The trigger for sharp falls in bitcoin, ether and other cryptocurrencies appeared to be China\u2019s move on Tuesday to reinforce strict curbs on crypto trading by barring financial institutions from providing transaction services.<\/p>\n
Traders said the huge run-up in prices for the asset class in recent months meant that gravity also probably played a role, as well as Tesla boss Elon Musk\u2019s apparent cooling on bitcoin over the amount of energy consumed in processing transactions.<\/p>\n
Outages at several major trading platforms during the maelstrom, which also set ether tumbling nearly 50%, also did little to inspire confidence. Although well above overnight lows, ether and bitcoin remained under pressure on Thursday.<\/p>\n
\u201cIt\u2019s not just crypto \u2013 although that is the poster child of this movement \u2013 but SPACs, recent IPOs, ARK Innovation and Tesla, to name a few, have all lost their bid,\u201d said Chris Weston, head of research at brokerage Pepperstone in Melbourne.<\/p>\n
\u201cFor me, the overriding factor is liquidity and the timing of lower liquidity and that is having huge ramifications – we are debating, not just a slower pace of central bank asset purchases (QE), but when QE comes to an end.\u201d<\/p>\n
Elsewhere industrial commodities fell sharply on Thursday after China said it would strengthen its management of supply and demand to curb unreasonable rises.<\/p>\n
Dalian iron ore futures fell 7% in early trade and coal futures fell 8% , triggering a downside limit.<\/p>\n
Crude oil came off overnight lows but remained under pressure on worries about fresh COVID-19 curbs in Asia crimping demand and about the U.S. rates outlook.<\/p>\n
Brent crude was last steady at $66.70 a barrel and U.S. crude at $63.29.<\/p>\n