Asian Shares Decline Amid Omicron, Fed, Ukraine Jitters

Asian shares skidded Tuesday following a volatile day on Wall Street. Inflation-fighting measures from the Federal Reserve and the possibility of conflict between Russia and Ukraine are overhanging markets, Yuri Kageyama reported for the Associated Press (AP).

Photo Insert: The Hong Kong Stock Exchange

Japan’s benchmark Nikkei 225 slipped 2.0% in morning trading to 27,027.23. Australia’s S&P/ASX 200 dropped 2.3% to 6,972.10. South Korea’s Kospi lost 2.1% to 2,734.03. Hong Kong’s Hang Seng shed 1.7% to 24,242.91, while the Shanghai Composite dipped 1.0% to 3,487.46.

“The surprise turnaround in U.S. market overnight does not seem to provide any relief into Asia’s session today,” said Yeap Jun Rong, market strategist at IG. A late-day buying spree pushed the benchmark S&P 500 index to a 0.3% gain after pulling it out of so-called correction territory — a drop of 10% or more from its most recent high.

The Dow Jones Industrial Average had declined more than 1,000 points before rallying and ending higher.

"We’re in this wait-and-see mode, which is almost the most uncomfortable place to be, so I think the market is really grappling with that,” said Lindsey Bell, chief markets and money strategist at Ally Invest.

Monday’s wild turnaround followed a three-week decline for the S&P 500, concluding with its worst weekly stretch since the start of the pandemic.

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