قالب وردپرس درنا توس
Home / Business / Asian markets plummet after Wall Street sell off

Asian markets plummet after Wall Street sell off



U.S .. Markets rebounded slightly Thursday morning after a government report showing that consumer prices rose less than expected last month.

U.S. Consumer prices rose 0.1% in September, after a 0.2% increase in August.

The report comes after a global sell-off when investors reacted to fears that rising US interest rates will lead to slower growth in the world's largest economy. [19659004] China was among the hardest hit, with indices in Shanghai and Hong Kong declining 5.2 and 3.5 percent, respectively. More than a quarter of the shares of the Shanghai Stock Exchange fell 1

0% of their daily limit, according to Bloomberg, as the Shanghai composite index hit the lows not seen since 2014.

The TWSE index technology in Taiwan fell by 6.3%, while the Japanese Nikkei slipped by almost 4% and the South Korean KOSPI index fell 4.4% when foreign investors withdrew.

"If it continues for three consecutive days, it will be more than a market correction – it's more likely to be really big sales," said Jackit Wong, vice president of global market research with headquarters in Hong Kong at MUFG Bank. "We hope for a quiet day tomorrow."

Markets in Europe have lost their previous losses after the inflation report. The Stoxx Europe 600 was down by 1%, with the FTSE 100 in London falling by a similar percentage.

In the United States, the Dow Jones industrial average rose by 0.2%, the Standard & Poor 500 overall index rose 0.1% and the heavily-tech Nasdaq increased by 0.7% after Thursday's inflation report.

The Dow Jones industrial average lost more than 800 points on Wednesday, one of the worst sales since February, and criticism from President Trump, Michael Farr, Farr's CEO, Miller & Washington, said the Fed could be pushed to slow down the pace, but that this cycle – of panic and gradual calm – will probably continue with the inevitable increase in rates.

"What I expect to see is that this awareness has changed course," Farr said. "I think he will create these various incidents of hardship and sell as Wall Street proves this new reality."

After the US technology stocks have collapsed from one day to the next, the Chinese Internet giant Tencent, the largest Asian company by market capitalization and a major factor in Hong Kong Hang Seng index , was again hit by the 6.8% decline. Tencent retired by 43% from its peak this year and fell from the top 10 global companies by market value.

Li Daxiao, chief economist at Yingda Securities in Shenzhen, said the Shanghai and Shenzhen shares fell more than expected Thursday after the wave of the American route hit Asia . "Fear is transmitted from the market to the market," he said.

Investors were worried that the Federal Reserve would continue to raise interest rates and that this would slow down economic growth and make loans more expensive for the US government, as well as businesses and consumers.

"The US market sell-off last night scared the feeling and rekindled memories of similar trading sessions at the start of this year," wrote Medha Samant, director of investment for Asian equities by Fidelity International, in a note to the Financial Times. "[It is] This negative sentiment could probably come to Asian markets in the short term," he wrote.

President Last Wednesday Trump strongly criticized the Fed for increasing rates, signaling again that he wanted that interest rates remained low.

"The Fed is making a mistake, they're so tight, I think the Fed went crazy," he told reporters as he traveled to Pennsylvania on Wednesday. "It's a correction we've been waiting for a long time, but I do not agree with what the Fed is doing, okay?"

The jitters were already high, thanks to the trade war between China and the United States, that shows no signs of being resolved in a short time.

Treasury Secretary Steven Mnuchin met Chinese central banker Yi Gang at a World Bank conference in Indonesia on Thursday, one day after he warned China against the "competitive depreciation" of its currency against the US dollar, while the commercial war intensifies.

The meeting took place while Beijing – and investors around the world – are waiting to see if the Treasury Department will label China as a currency manipulator next week in a relationship that could trigger a new cycle of recriminations between the two economic giants.

The Chinese renminbi stabilized at around 6.93 per dollar from Thursday, after falling sharply at the start of the week.

Yi did not tell journalists how he went on Thursday to meet with Mnuchin, but he told Chinese financial magazine Caixin that China was on track to its GDP growth targets despite concerns over the commercial war and on debt levels.

The renminbi had fallen "significantly" during the year and the Treasury Department is monitoring this "very carefully" to make sure China was not manipulating its currency to gain an advantage in the trade war, Mnuchin said at the Financial Times in an interview.

He said he wanted to discuss the currency with Beijing as part of the trade t ALKS. "As we look at trade issues, there is no doubt that we want to make sure that China is not making competitive devaluations," he told the business paper.

Separately, the Treasury Department has issued new rules on foreign investments in American companies, strengthening its power to block them for national security reasons. China was the main objective of these rules.

This ongoing friction will probably suppress the markets for some time, analysts say.

"While uncertainty continues to prevail in the financial markets of the world, many investors remain on the sidelines of all this, further clarity emerges in the American Treasury and in the Chinese markets," said Yasuo Sakuma, head of the investments in Libra Investments, according to Reuters.

Shih reported from Hong Kong. Luna Lin contributed to this report from Beijing.


Source link