Asia-Pacific Markets Fell Significantly Following Volatility Of Wall Street
After a volatile session overnight on Wall Street, Asia-Pacific markets tumbled on Tuesday as Japan stocks dropped more than 2%.
As the auto and tech stocks were largely down, Japan’s Nikkei fell 2.13%, Topix fell 2.13%. On the other hand, Hong Kong’s Hang Seng Index fell 2%, before recovering to 1.65%.
Banks, miners, and oil stocks all tumbled across the board as the ASX 200was hit with losses by falling nearly 3%. Several bank stocks fell significantly, as ANZ fell by 2%, Commonwealth Bank of Australia fell by 2% and National Australia Bank fell by 2.9%. Oil stocks like Woodwide Petroleum fell by 3.98%, Santos by 4.83%, and Beach Energy slid by 7.77%.
Going by the Australian Bureau of Statistics, inflation in Australia rose by 1.3% in the fourth quarter, and 3.5% for the year. Reuters also reported that prices increased at its fastest pace since 2014.
On Tuesday, the Bank of Korea said in a press release that South Korea’s economy grew 1.1% in the fourth quarter of 2021 compared to the previous quarter. If calculated for the entire year, the country’s GDP expanded by 4% in 2021, which was the fastest in 11 years.
The Mainland Chinese stocks also fell. The Shenzhen Component was down by 1.59% while the Shanghai Composite lost 1.12%.In response to the rising prices as global demand recovers and supply-side disruptions persist, Singapore’s central bank tightened its monetary policy on Tuesday.
Singapore’s monetary authority, which uses the exchange rate to manage policy, said itwould raise the rate of appreciation of its policy band slightly.
The Straits Times Index was down by 1.3%. On the other hand, the Singapore dollar strengthened against the U.S. dollar to trade at 1.3432.
Investors stepped in to buy beaten-up tech shares due to a dramatic comeback of the stocks, which were sold off earlier as the U.S. markets were volatile on Monday.
After falling as low as 1,115 points, the Dow rallied to close up 99.13 points, or 0.3 percent, higher at 34,364.50, its first gain in seven days. After briefly sliding into corrective territory earlier in the day, the S&P 500 finished in the green, down more than 10% from its Jan. 3 record close. At 4,410.13, it concluded 0.3 percent higher.
After falling as much as 4.9 percent earlier in the day, the Nasdaq Composite Index rose 0.6 percent to 13,855.13 points.
The investor of 60 Second wrote on Tuesday, “The recent sell-off in stocks reflects concern about the Fed tightening at a time when the economic momentum is slowing. However after eight straight days of selling and a 10% drop year to date, more attractive valuations especially in technology stocks attracted bargain hunters,”
Oil prices decreased by roughly 2% overnight because of the Fed’s expected tightening. On Tuesday and Wednesday, the Federal Open Market Committee will convene to decide on the next steps in US monetary policy.
Crude in the United States increased 0.48 percent to $83.71 per barrel, while Brent rose 0.64 percent to $86.82.
Glenda Bozeman – Business and Services
Glenda Bozeman writes Business articles for industries that want to see their Google search rankings surge. Her articles have appeared in a number of sites. Her articles focus on enlightening with informative Services sector needs. She holds the degree of Masters in Business and Marketing. Before she started writing, she experimented with various professions: computer programming, assistant marker, and others. But her favorite job is writing that she is now doing full-time.
