Asian shares experienced a decline in early Thursday morning trading following Wall Street’s downturn, as recent market volatility continued to unsettle investors. Japan’s Nikkei 225 dropped by 2.4%, Australia’s S&P/ASX 200 fell by 0.6%, and South Korea’s Kospi saw a 1.8% decline. Hong Kong’s Hang Seng also dropped by 1.1%.
The S&P 500 and Dow Jones Industrial Average futures were down by 0.2% and 0.1% respectively. Despite a decrease on Wall Street the previous day, it was not as severe as the recent turbulent market conditions that have affected global markets. European markets, however, recorded significant gains.
Concerns over potential rate hikes prompted Japanese officials to reassure investors after a key rate increase led to heavy selling on Monday, resulting in the Nikkei’s largest percentage loss since 1987. The Japanese yen remained relatively stable against the U.S. dollar after significant gains in its value that triggered share sell-offs earlier in the week.
Investors are closely monitoring earnings reports released worldwide, with companies like Honda Motor Co. and Sony Corp. reporting positive financial results. Honda’s shares increased by 1% and Sony’s by 2.2%. Taiwan’s trade data for July, expected later, was projected to show weakened but still growing export and import figures, leading to a 2.5% fall in the benchmark Taiex.
On Wall Street, the S&P 500, Dow, and Nasdaq composite experienced declines of 0.8%, 0.6%, and 1% respectively on Wednesday. Notably, Nvidia shifted from a gain to a loss, weighing heavily on the index. Big Tech stocks, including Nvidia, have faced challenges amid concerns of overvaluation within the artificial intelligence sector.
There are expectations on Wall Street for the Federal Reserve to potentially cut its main interest rate at the next scheduled meeting, either by a traditional quarter-point or a more significant half-point decrease. In energy trading, benchmark U.S. crude rose by 16 cents to $75.39 a barrel, while Brent crude, the international standard, increased by 11 cents to $78.44 a barrel.
