Asian stocks tumbled on Tuesday, following a sharp decline on Wall Street prompted by rising U.S. bond yields which intensified pressure on equities.
The Shanghai Composite index dropped 1.4% to 3,013.84, despite China reporting a faster-than-expected annual growth rate of 5.3% for the first quarter. On a quarterly basis, the economy grew by 1.6%.
Hong Kong’s Hang Seng index fell 1.9% to 16,279.66.
In Tokyo, the Nikkei 225 index declined 2.1% to 38,402.59 as the U.S. dollar strengthened against the Japanese yen, reaching new 34-year highs. By midday, the dollar traded at 154.33 yen, up from 154.27 yen.
Wall Street had closed significantly lower on Monday, driven by a spike in U.S. Treasury yields and geopolitical tensions in the Middle East, which dampened investor risk appetite.
In the U.S., retail sales for March exceeded analyst forecasts, underscoring the resilience of the American consumer. This robust data suggested that the Federal Reserve might delay interest rate cuts longer than previously expected.
The major U.S. stock indices reversed early gains and continued the downward trend from Friday. The Dow Jones Industrial Average dropped 0.65% to 37,735.11, the S&P 500 fell 1.20% to 5,061.82, and the Nasdaq Composite declined 1.79% to 15,885.02.
