Asian shares dropped on Thursday, set for their worst day in two months, as warnings from U.S. Federal Reserve officials underscored investor worries over the resilience of an economic recovery from the coronavirus pandemic. MSCI's broadest index of Asia-Pacific shares outside Japan slumped 1.93% in the afternoon session on broad losses across the region, putting it on track for its biggest daily drop since July 16. The MSCI index is also set for its biggest weekly drop since March, down more than 4% so far this week. Chinese blue-chips dropped 1.6%, Hong Kong's Hang Seng fell 1.7%, Seoul's KOSPI sank 2.59% and Australian shares fell 0.81% .Japan's Nikkei declined 1.11%, Reuters reported. In the currency market, the dollar touched a new two-month high. The dollar index, which measures the greenback against a basket of peers hovered near those highs at 94.409 on Thursday afternoon, but edged down against the yen to 105.31 .The euro ticked down to $1.1657. Brent crude dropped 0.53% to $41.55 a barrel and U.S. West Texas Intermediate crude was 0.73% lower at $39.64 a barrel.