China’s woes, a global wave of monetary tightening and the war in Ukraine are casting a pall over the world economy. In a semi-annual report, the Fed warned of deteriorating liquidity conditions across key financial markets.
Asian shares slump on investor concern about global growth
Stocks slid and bonds rallied Tuesday as concerns about a darkening economic outlook reverberated around global markets.
An Asia-Pacific equity gauge fell to the lowest since July 2020 amid drops in Japan, China and Hong Kong, where technology shares slumped. S&P 500 and Nasdaq 100 futures wavered after U.S. stocks hit a 13 month-low.
Oil fell toward $100 a barrel on economic concerns and the European Union’s move to soften some proposed sanctions on Russian oil over the Ukraine war.
A dollar gauge is at the highest level since 2020, while China’s economic slowdown amid Covid lockdowns is putting pressure on the yuan.
S&P 500 futures fell 0.2%, Nasdaq 100 futures fell 0.1%, and Euro Stoxx 50 futures lost 0.7%.
Japan’s Topix index shed 1.8%, Australia’s S&P/ASX 200 Index dropped 2.2%, South Korea’s Kospi index declined 1.8%, China’s Shanghai Composite index fell 1.2%, and Hong Kong’s Hang Seng index was 2.9% lower.
Overnight, the Dow Jones Industrial Average fell 653.67 points, or 1.99%, to 32,245.7, while the S&P 500 lost 132.1 points, or 3.20%, to 3,991.24, its lowest close since March 31, 2021. The Nasdaq Composite dropped 521.41 points, or 4.29%, to 11,623.25.
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