Hong Kong’s Hang Seng index drops 3% as Asia stocks fall
SINGAPORE — Shares in Asia-Pacific largely declined in Friday trade after an overnight drop on Wall Street sent the Dow Jones Industrial Average to its worst day since 2020.
Hong Kong Hang Seng indexThe regional leader in losses was the Xinhua, which fell to 3.57% at lunchtime. China’s mainland saw the following: Shanghai CompositeThe decline was 2.31%, while Shenzhen ComponentGet rid of 2.326%
Richard Martin, a consultant and managing director of IMA Asia said that Asia is influenced greatly by the U.S. Fed and its economy. However, now they face the zero-Covid problem posed by China.
Data show China’s recent Covid lockdownsThese infections are more widespread than in Beijing and Shanghai.
Martin explained that most of the materials and components come from China. Therefore, in addition to low demand, there will be a shortage from China. That would cause problems on both the supply-side into Asia, which could stop factories operating.
Following the near 5% stateside drop of Nasdaq Composite, a tech-rich company, the regional technology stocks fell.
Let’s take a look at the shares TencentWhile the increase was 4.53% AlibabaIt fell to 6.46% MeituanThis fell by 5.22%. Hong Kong’s Hang Seng Tech Index was 5.03% lower. This risk-off attitude extended to electric vehicles stocks as well. Xpengplunged 10.24% NioYou can save 11.03%
Japan has a high proportion of conglomerates SoftBank GroupDropped 1.78%. Kakao in South Korea fell 4.83%, while Samsung Electronics dropped nearly 2%.
Japanese stocks were able to defy the regional trends and returned to trade Friday morning after they had been off for most of this week. This is the Nikkei 225Gained 0.84%, Topix traded 1.01 percent higher.
MSCI’s Asia-Pacific broadest index, which excludes Japan, fell to 2.58%.
Overnight on Wall Street, the Dow Jones Industrial Average plunged 1,063.09 points — or 3.12% — to 32,997.97. The S&P 500 fell 3.56% to 4,146.87.
Wall Street’s Thursday moves were markedly different to Wednesday’s rallies after the U.S. Federal Reserve increased its benchmark interest rate by half a percentage pointThis is in line with market expectations, and the largest increase in 20 years.
Powell, the Fed chairman, also stated that raising rates by 75 basis point at a given time was not something Powell is considering.
According to Taylor Nugent of National Australia Bank’s economist, “The sharp reversal is not explained by any obvious news flows. It seems that instead, the relief from Powell suggesting 75bp moves were likely to be a step too soon gave way to high inflation and a difficult growth outlook,” he wrote Friday.
The U.S. dollar indexThe indices that track the greenback against its peers were at 103.669, a rise from below 103.
The Japanese yenThe dollar traded at 130.57 dollars, a lower level than the 130.57 seen earlier in the week. The Australian dollarYesterday’s fall from levels of $0.721 to $0.7107 resulted in a $0.7107 drop.