Dubai Telegraph - Stocks mostly slide on strong dollar

London stocks also dipped and the pound ducked under $1.12, as British Prime Minister Liz Truss's government teetered on the brink of collapse after the resignation of home secretary Suella Braverman.

The haven dollar meanwhile soared above 150 yen for the first time since 1990, stoking speculation that Japanese authorities could intervene again to support the battered currency.

The greenback also rallied to a record high at 7.2790 against the offshore yuan, with the US unit boosted by the Federal Reserve's aggressive interest rate hikes.

- Risk rally fades -

"It looks like the latest risk rally is fading before it really got started," IG analyst Chris Beauchamp told AFP.

"Markets are worrying about how the rising dollar will begin to break other economies, as it negates their efforts to control inflation by driving their currencies lower while making it more expensive to borrow for a host of emerging market nations."

He added that disappointing earnings at electric carmaker Tesla "have soured what was a passably good start to the reporting season".

The unease on trading floors, and concerns that runaway inflation is showing no sign of easing, also sent investors back into the safety of the dollar.

Added to the gloom, Truss looks to be doomed after only six weeks in charge, with her own Conservative MPs calling for her to quit and moves apparently afoot to remove her.

A parliament vote on banning fracking descended into chaos late Wednesday, prompting talk that it was the final nail in the coffin of her premiership.

- 'Further UK turbulence likely' -

That came days after the sacking of finance minister Kwasi Kwarteng and the dismembering of the Truss government's debt-fuelled budget that had sparked chronic markets turmoil.

"The UK was already facing immense challenges from high inflation, rapidly rising interest rates and an economy already probably in recession," OANDA analyst Craig Erlam told AFP.

"The last thing it needed was an incompetent and unstable government to complete the set," he said.

"The pound and UK bond yields ... both remain vulnerable as the economy finds itself facing enormous headwinds -- and the government is on the brink of collapse. Further turbulence looks likely."

After Wall Street's drop, markets across Asia were also deep in the red.

Selling was also fuelled by concerns about the Chinese economy as Covid cases spike in the country and leaders stick to lockdown strategies.

A decision to delay the release of China's third-quarter economic growth data this week added to the unease among investors.

Oil extended Wednesday's rally that came in reaction to a drop in US petroleum stockpiles, and despite President Joe Biden's decision to release 15 million barrels from US strategic reserves.

- Key figures around 1040 GMT -

London - FTSE 100: DOWN 0.3 percent at 6,907.59 points

Frankfurt - DAX: DOWN 0.8 percent at 12,643.00

Paris - CAC 40: FLAT at 6,039.51

EURO STOXX 50: DOWN 0.5 percent at 3,455.42

Tokyo - Nikkei 225: DOWN 0.9 percent at 27,006.96 (close)

Hong Kong - Hang Seng Index: DOWN 1.4 percent at 16,280.22 (close)

Shanghai - Composite: DOWN 0.3 percent at 3,035.05 (close)

New York - Dow: DOWN 0.3 percent at 30,423.81 (close)

Pound/dollar: DOWN at $1.1216 from $1.1219 on Wednesday

Dollar/yen: DOWN at 149.78 yen from 149.90 yen

Euro/dollar: UP at $0.9806 from $0.9773

Euro/pound: UP at 87.39 pence from 87.11 pence

Brent North Sea crude: UP 1.5 percent at $93.77 per barrel

West Texas Intermediate: UP 2.0 percent at $87.24 per barrel

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G.Mukherjee--DT