Asian stock markets mostly saw declines following a downturn on Wall Street, putting a pause on the recent robust rally.
Japan’s Nikkei 225 experienced a 0.8% drop to 39,511.88, while Australia’s S&P/ASX 200 decreased by 1.3% to 7,788.20.
In South Korea, the Kospi fell 1.3% to 2,716.65. The Hang Seng in Hong Kong went down by 0.6% to 16,832.52, and the Shanghai Composite in China declined by 0.3% to 3,066.66.
Analysts express growing concerns that the issues affecting Wall Street could extend to Asian markets, despite China’s recently encouraging economic indicators.
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Stephen Innes, managing partner at SPI Asset Management, commented, “There’s an increasing struggle among investors to come to terms with the likelihood that this market instability might lead to a more substantial correction.”
China aims for approximately 5% economic growth this year, attempting to overcome recent challenges in its real estate sector and the ongoing impacts of the pandemic.
On Tuesday, Wall Street saw significant losses. The S&P 500 dropped 0.7% to 5,205.81, marking its poorest performance in four weeks. The Dow Jones Industrial Average decreased by 1% to 39,170.24, and the Nasdaq Composite also fell 1%, reaching 16,240.45.
Additionally, yields on 10-year US Treasury bonds climbed to 4.35%, up from 4.33% on Monday.
