Asian stocks fall to two-year low, euro nears par with dollar on growth fears

HONG KONG, July 12 (Reuters) – Global equities faltered, oil fell and the euro inched closer to parity with the safe haven dollar on Tuesday as the prospect of further tightening by central banks, renewed COVID outbreaks in China and Europe’s energy shortages spooked investors.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 1.3% to its lowest level in two years, while Japan’s Nikkei (.N225) lost 2%.

Futures also pointed to a week open in the U.S. and Europe, as U.S. S&P 500 e-minis , lost 0.6%, Nasdaq futures fell 0.7%, pan-region Euro Stoxx 50 futures shed 0.8% and FTSE futures slipped 0.44%.

The euro fell as low as $1.0005 against the U.S. dollar, moving ever closer to parity for the first time since December 2002, as investors worry an energy crisis will tip the region into a recession.

“Risk-off sentiment is dominating global…