Japan’s Nikkei 225 drops more than 2% after stock plummets on Wall Street
SINGAPORE – Asia-Pacific stocks fell on Wednesday after falling overnight on Wall Street, with the Nasdaq Composite plunging nearly 3% as bond yields rise.
In Japan, the Nikkei 225 slipped 2.45% while the Topix index fell 2.47%. South Korea’s Kospi lost 1.87%.
Mainland Chinese stocks also suffered significant losses, with the Shanghai composite losing 1.79% and the Shenzhen component falling 1.412%.
Hong Kong’s Hang Seng Index fell 0.45% in the afternoon. China Evergrande Group’s Hong Kong-listed shares, however, jumped 10.11% after the developer announced it would sell a $ 1.5 billion stake in Shengjing Bank to an asset management company. state owned.
The S & P / ASX 200 in Australia fell 1.2%.
The largest MSCI index of Asia-Pacific equities excluding Japan fell 1.23%.
Investors watched the 10-year Treasury yield, which broke the 1.5% mark on Monday and continued to climb and was last at 1.5375%. Yields move in the opposite direction to prices.
The surge in yields hit tech stocks overnight on Wall Street, with the Nasdaq Composite falling 2.83% to 14,546.68 on its worst day since March. Tech stocks are hit in an environment of rising yields, as rising rates make their future cash flows less valuable and, in turn, make popular stocks appear overvalued.
Tech stocks in Asia fell on Wednesday, with shares of Japanese conglomerate Softbank Group falling 2.33% and South Korea’s Samsung Electronics falling 3.01%.
Chinese tech stocks in Hong Kong were also down, with Tencent plunging 2.72% and Alibaba slipping 2.52%. The Hang Seng Tech index fell 2.21%.
On Wall Street, the S&P 500 lost 2.04% overnight to 4,352.63 while the Dow Jones Industrial Average slipped 569.38 points to 34,299.99.
Oil drops more than 1%
Oil prices were down in the afternoon of trading hours in Asia, with international benchmark Brent crude futures down 1.48% to $ 77.92 a barrel. US crude futures fell 1.55% to $ 74.12 a barrel.
The US dollar index, which tracks the greenback against a basket of its peers, stood at 93.722 after its recent rally below 93.6.
The Japanese yen was trading at 111.49 per dollar, lower than the levels below 111.2 seen against the greenback earlier this week. The Australian dollar was at $ 0.7251 after falling over $ 0.729 yesterday.