Asian stocks suffer after Wall Street slump

The US stock market rout spread into Asia on Thursday.Tokyo's benchmark Nikkei index plunged 3.7%, an...

Posted: Oct 25, 2018 8:44 AM
Updated: Oct 25, 2018 8:44 AM

The US stock market rout spread into Asia on Thursday.

Tokyo's benchmark Nikkei index plunged 3.7%, and Hong Kong's Hang Seng fell nearly 2.5% before recovering to close down 1%. The latest hit to the region's battered stocks was prompted by sharp losses Wednesday on Wall Street that wiped out top US indexes' entire gains for 2018. The Nasdaq slumped more than 4%.

Banking, finance and investments

Business, economy and trade

Economic indicators

Economy and economic indicators

Financial markets and investing

Securities trading

Stock indexes

Stock markets

Continents and regions

North America

The Americas

United States

Bear market

Economic conditions

Economic growth

Asia

China

East Asia

Wall Street

Company activities and management

Company earnings

Financial performance and reports

Financial results

The sell-off in US markets is "beckoning Asia investors to make a similar rush for the doors," said Jingyi Pan, a Singapore-based market strategist at broker IG Group.

Top Asian markets have been hammered this year by rising US interest rates and fears over slowing global economic growth, particularly in China. Stocks in Shanghai and Hong Kong have tumbled into bear market territory as the Chinese economy has lost momentum and faced a growing threat from the trade war with the United States.

A broad measure of stocks across the region, the MSCI Asia Pacific Index, has now slipped into a bear market, which means a 20% decline from its January peak.

Major European markets also opened lower Thursday, but the declines were less severe than in Asia. The main indexes in Britain and Germany were down less than 1% in morning trading.

As in the United States, tech stocks were among the big losers in Asia. Chinese social media and gaming company Tencent (TCEHY) slid 2.5%. Tech companies are among the markets' most richly valued shares, which means they often bear the brunt of losses.

But analysts are struggling to pinpoint a clear reason for this sell-off.

"What makes the latest volatility more troubling is that it's been difficult to identify one specific cause," said Kerry Craig, global market strategist at JPMorgan Asset Management. "There are many symptoms but no one can diagnose the illness."

Investors are increasingly concerned that earnings and economic growth have peaked as tighter monetary conditions and the impact of tariffs begin to weigh on profits, according to Craig.

Economic data out of Asia failed to provide any encouragement. South Korea's benchmark index closed down 1.6% after the country's third-quarter economic growth missed analysts' forecasts.

China is one of the world's worst performing stock markets this year. The main Shanghai index is down more than 28% since late January, hurt by fears about the economy and trade tensions.

The index rebounded nearly 7% over the course of trading on Friday and Monday following a rare concerted intervention by senior officials to talk up the country's struggling economy and markets. It ended flat Thursday after recovering from steep losses earlier in the day.

California Coronavirus Cases

Data is updated nightly.

Cases: 3147735

Reported Deaths: 36846
CountyCasesDeaths
Los Angeles106550515184
San Bernardino2628581594
Riverside2585322777
San Diego2255582344
Orange2214932625
Santa Clara964351181
Kern89095590
Fresno847441043
Sacramento828611157
Alameda69693886
Ventura64404507
San Joaquin59395808
Contra Costa54416487
Stanislaus43938788
Tulare42759531
Monterey37285259
San Mateo33731340
San Francisco30027278
Santa Barbara26514264
Solano26494111
Imperial25562493
Merced25048324
Sonoma24761247
Kings19760160
Placer17675188
San Luis Obispo16437151
Madera13781151
Santa Cruz12687130
Marin11930163
Yolo11014138
Shasta9920129
Butte9711134
El Dorado800259
Sutter792783
Napa782847
Lassen526916
San Benito514348
Yuba504929
Tehama446846
Tuolumne344340
Nevada329674
Mendocino325635
Amador304232
Lake268132
Humboldt249425
Glenn198522
Colusa18549
Calaveras167223
Siskiyou148413
Mono11354
Inyo100729
Del Norte8732
Plumas6055
Modoc3873
Mariposa3464
Trinity3054
Sierra880
Alpine730
Unassigned00
Chico
Clear
34° wxIcon
Hi: 47° Lo: 34°
Feels Like: 34°
Oroville
Clear
39° wxIcon
Hi: 48° Lo: 40°
Feels Like: 34°
Chico
Clear
34° wxIcon
Hi: 43° Lo: 34°
Feels Like: 34°
Red Bluff
Partly Cloudy
33° wxIcon
Hi: 33° Lo: 14°
Feels Like: 28°
Red Bluff
Partly Cloudy
33° wxIcon
Hi: 46° Lo: 32°
Feels Like: 28°
Chico
Partly Cloudy
34° wxIcon
Hi: 48° Lo: 34°
Feels Like: 34°
Some snow and rain possible Sunday into Monday. A major winter storm will bring up to 7 feet of snow to the mountains and multiple inches of rain to the valley Tuesday through Friday and keep temperatures cold.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events