Asian Markets Decline Following Wall Street's Worst Day in Weeks

Asian Markets Decline Following Wall Street's Worst Day in Weeks

## Asian Markets Decline Following Wall Street's Worst Day in Weeks

Asian stock markets mostly declined on Wednesday, following Wall Street's worst day in weeks. The decline was attributed to concerns that anxieties rattling the US market might spread to Asia, despite recent positive economic signs from China.

Japan's Nikkei 225 fell 0.8%, Australia's S&P/ASX 200 slipped 1.3%, and South Korea's Kospi dropped 1.4%. Hong Kong's Hang Seng lost 1.1%, while the Shanghai Composite fell 0.2%.

Analysts believe investors are worried that the recent market turbulence could mark the beginning of a more significant correction. This comes as China aims for an ambitious 5% economic growth this year, seeking to overcome recent troubles in the property sector and pandemic disruptions.

## Wall Street's Rough Day

On Wall Street, the S&P 500 fell 0.7%, its worst day in four weeks. The Dow Jones Industrial Average lost 1%, and the Nasdaq composite fell 1%. Health insurance companies led the market lower, while Tesla dropped 4.9% after delivering fewer vehicles than expected.

Traders have reduced their expectations for how many times the Federal Reserve will cut interest rates this year, halving them from a forecast of six at the start of the year. This aligns with the three cuts hinted at by Fed officials. However, some believe the strong US economy might lead to only two rate cuts this year.

In the bond market, the yield on the 10-year Treasury rose to 4.35%, while the two-year yield slipped to 4.69%. High rates slow the economy by making borrowing more expensive and hurting investment prices. Bitcoin also fell 5.4%.

Critics argue that the US stock market has become too expensive after soaring more than 20% in six months. Companies will need to deliver strong profit growth to justify such moves.

## Energy and Currency Markets

In energy trading, benchmark US crude added 3 cents to $85.18 a barrel, while Brent crude rose 10 cents to $89.02 a barrel.

In currency trading, the US dollar rose to 151.61 Japanese yen, and the euro cost $1.0775.