Asian Markets Sag, Follow Wall Street Fall
Asian stocks fell Wednesday after another turbulent day for US markets, as investors continue to sell off amid fears of global inflation, further interest rate hikes, and broader economic turmoil, Michelle Toh reported for CNN Business on Sept. 28, 2022.
Photo Insert: The Dow sunk deeper into a bear market as it fell more than 125 points.
Japan’s benchmark Nikkei (N225) index slid 2.2% as of lunchtime local time Wednesday, while South Korea’s Kospi (KOSPI) dropped 2.8%. Hong Kong’s Hang Seng Index (HSI) shed 2.2%, as China’s benchmark Shanghai Composite (SHCOMP) index slipped 0.9%. Australia’s S&P/ASX 200 was also down 0.9%.
The dips come after another volatile day on Wall Street, with the Dow and S&P 500 reaching their lowest levels since November 2020. That put the Dow deeper into a bear market, as it fell more than 125 points, or 0.4%. The S&P 500, meanwhile, pointed down 0.2%
The Nasdaq, however, closed up 0.3% — eking out its first gain since September 19. As of 12:30 ET on Wednesday, US stock futures were pointing down.
The US Federal Reserve’s aggressive rate-hiking policy and Britain’s newly announced tax cuts have spiked investor jitters around the world, and caused the US dollar to surge.
But the greenback’s rally is also feeding investor concerns, Societe Generale’s Kit Juckes noted Monday, as large surges historically occur alongside global economic crises, Nicole Goodkind also reported for CNN Business.