* Asian shares extend losses for second consecutive day
* Banking sector sell-off continues on dirty money reports
* Fresh lockdown worries, stimulus delay spook investors
By Sumeet Chatterjee and Suzanne Barlyn
HONG KONG/NEW YORK, Sept 22 (Reuters) - Asian shares
extended losses for the second day on Tuesday while the dollar
rose, as possible delays in expanded U.S. stimulus and concerns
about fresh pandemic lockdowns in Europe knocked investor
sentiment.
Hong Kong shares of HSBC 0005.HK and Standard Chartered
2888.HK fell more than 2% each, as global banking stocks
remained under intense pressure on reports about financial
institutions allegedly moving illicit funds.
British lenders HSBC and StanChart were among global lenders
named as having transferred more than $2 trillion in suspect
funds over nearly two decades. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was down 0.5%.
Australia's S&P/ASX 200 .AXJO dropped 0.7% pressured by
miners and energy stocks, while China's blue-chip index
.CSI300 shed 0.1% and Hong Kong's Hang Seng index .HSI was
down 0.5%. Japanese markets were closed for a public holiday.
After-hours trade pointed to further selling pressure on
Wall Street on Tuesday, with S&P 500 futures ESc1 down 0.2% in
early Asia and Nasdaq 100 futures NQc1 off 0.4%.
"We can't see any positive news on the horizon in the
near-term for the markets to rebound," said Steven Leung,
executive director for institutional sales at Hong Kong
brokerage UOB Kay Hian.
Overnight on Wall Street, the Dow Jones Industrial Average
.DJI fell 1.84%, the S&P 500 .SPX lost 1.16%, and the Nasdaq
Composite .IXIC dropped 0.13%.
U.S. stocks have tumbled over the past three weeks as
investors dumped heavyweight technology-related shares following
a stunning rally that lifted the S&P 500 and the Nasdaq to new
highs.
JPMorgan Chase & Co JPM.N and Bank of New York Mellon Corp
BK.N fell 3.1% and 4.0%, respectively, on Monday.
"The question is whether or not the residue of that impacts
the performance of regional financials," said CommSec market
analyst Tom Piotrowski in Sydney.
The coronavirus also remains front and centre of investor
concerns.
New pandemic measures in the UK set off declines in airline,
hotel and cruise companies in both European and U.S. markets,
spurring fears about further restrictions.
The Telegraph newspaper reported Prime Minister Boris
Johnson will encourage Britons on Tuesday to go back to working
from home. Any fresh coronavirus restrictions would threaten a
nascent recovery and further pressure equity markets.
Concerns are also growing about a delay in stimulus measures
after the U.S. Congress has remained deadlocked for weeks over
the size and shape of another coronavirus-response bill, on top
of the roughly $3 trillion already enacted into law.
The death of U.S. Supreme Court Justice Ruth Bader Ginsburg
appeared to make the passage of another stimulus package in
Congress less likely before the Nov. 3 presidential election,
sparking large declines in the healthcare sector.
U.S. President Donald Trump said he would put forward his
nominee on Friday or Saturday and called upon the Senate,
controlled by his fellow Republicans, to vote on confirmation
ahead of the election. The dollar held on to sharp gains made on Tuesday, with
moves in Asia modest owing to a public holiday in Japan. The
euro EUR= was steady at $1.1764 and the yen, which backed off
a six-month high as the dollar gained, crept higher to 104.56
per dollar.
The Australian dollar AUD=D3 slipped a fraction to $0.7218
after a senior central banker flagged the prospect of policy
options including currency market intervention and negative
interest rates to support the economy. Gold fell against the rising dollar, and last traded at
$1,908.76 per ounce.
In oil markets, U.S. crude CLc1 rose 0.66% to $39.57 per
barrel while Brent LCOc1 gained 0.31% to $41.95.
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