Your current location is:{Current column} >>Text

Asian stocks hit by recession fears, Alibaba leads tech rout By

{Current column}4473People have watched

IntroductionBy Ambar Warrick-- Most Asian stock markets retreated on Thursday, tracking overnight losses on Wall ...

By Ambar Warrick

-- Most Asian stock markets retreated on National regular currency trading platformsThursday, tracking overnight losses on Wall Street amid growing concerns over a U.S. recession, largely softer-than-expected inflation data, and hopes of a pause in the Federal Reserve’s rate hike cycle.

Asian stocks hit by recession fears, Alibaba leads tech rout By

Hong Kong’s index was among the worst performers for the day, down about 0.5% due to a 3% drop in shares of Group Holding Ltd (HK:) (NYSE:). A report said that Japanese investment giant SoftBank Group Corp (TYO:) plans to offload almost the entirety of its stake in the e-commerce giant.

Hong Kong’s technology heavyweights were still reeling from losses this week, after major Tencent (HK:) shareholder (AS:) said it will sell more shares in the internet giant.

Softbank shares were flat, while the index traded sideways.

Regional economic readings offered some positive cues. Chinese bourses trimmed earlier losses, with the index now down 0.4%, while the was flat after data showed the country’s unexpectedly rebounded in March, signaling some improvement in weak offshore demand that has battered the country’s manufacturing sector.

India’s and indexes were flat after data on Wednesday showed inflation (CPI) eased more than expected in March, lending more credence to the recent decision to pause its rate hike cycle.

But broader Asian markets traded in a flat-to-low range as the minutes of the Federal Reserve’s March meeting showed that policymakers were concerned over a mild recession this year. While the central bank is likely to pause its rate hike cycle in the near future, an ensuing slowdown in economic growth could bode poorly for risk-driven Asian markets.

Wall Street indexes logged overnight losses as the cautious tone struck by the minutes largely offset somewhat positive inflation data.

U.S. also read weaker-than-expected for March, further spurring bets on a Fed pause by as soon as June. But , which excludes volatile food and fuel prices, still remained stubbornly high, putting a lid on expectations of a less hawkish Fed.

This uncertainty kept markets wary of risk-heavy assets, and fueled more flows into safe haven assets such as .

led losses across Southeast Asian markets with a 1% drop, while Australia’s fell 0.3%.

Substantially for March fueled bets that the may not yet be done with raising interest rates, despite announcing a pause earlier this month.

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!

Tags:

Related articles