Stocks collapse under the effect of global growth and US earnings concerns that scare markets

SYDNEY: Asian stocks plunged on Thursday as hundreds of billions of dollars in haemorrhaging on global markets erupted after the debacle of tech stocks that caused the biggest daily drop on Wall Street since 2011, thus canceling all his earnings for the year.

The broadest index of MSCI, composed of Asia Pacific shares outside Japan, slid about 2%. Japan's Nikkei fell 3.5% to a six-month low, while Australian stocks hit their lowest level in more than a year.

The Tokyo Topix Index plummeted 3%, causing more than $ 155 billion in market value to be lost. Chinese stocks also opened in the red, the SSE Composite first-rate index plummeted 2.5%. The Hang Seng Hong Kong index fell 2.2%.

The decline in US technology stocks, which were previously very promising, pushed investors to fear sovereign bonds. The 10-year Treasury bond yields have fallen 3.11% since May.

"Weak housing data in the United States, mixed company results, fears of a trade war, and fears of a slowdown in the global economy all contributed for sale, "said Rivkin Securities, based in Sydney, in a note addressed to its customers.

"Investor sentiment remains cautious, as we anticipate reports from more than 100 S & P 500 companies, including Amazon, Alphabet and Comcast."

Weak manufacturing figures in Europe contributed to worries about global growth, as well as an unexpected drop in home sales in the United States, suggesting that rising mortgage rates were reducing housing demand.

Adding to the tension, police intercepted alleged bombs sent to former US President Barack Obama, Hillary Clinton and other well-known Democrats, as well as CNN, in what New York officials described as terrorist act.

Increasing international pressure on Saudi Arabia following the death of journalist Jamal Khashoggi also weighed on investor sentiment.

On Wall Street, disappointing forecasts from chip makers hit the tech sector. They followed Tuesday forecasts lower than expected from industrial giants Caterpillar and 3M.

The Nasdaq closed down 12.4% from its record of August 29, falling 4.4% for the day to its largest percentage decline since one day since August 18, 2011.

In dollars, the Nasdaq sprays $ 524 billion in market capitalization overnight.

The Dow Jones index lost 2.41% and the S & P 500, 3.09%.

According to data badyzed by Reuters, the proportion of stocks, regions and technically declining sectors has increased since early January, which has led some badysts to conclude that the upward trend was already over.

Citi lowered its global growth forecast for the years 2019 and 2020 from 0.1% to 3.2% and 3% respectively, he said in a note on Thursday citing the tougher policy of the US Federal Reserve.

"According to badyst Catherine Mann, Citi economist, turbulence in financial markets is likely to worsen over the next year, due to the gap between market expectations. as regards the rise in key rates and the closing of the median scenario. "

On the foreign exchange markets, the participation of cash and option clients was quite low, Citi noted in a separate note.

Funds were transferred to the US dollar and Treasury securities, as well as to the euro and the pound sterling.

The euro lost 0.7% to 1.1379 dollar and broke a big wall chart at 1.1430 dollar. It was up 0.1 percent to $ 1,407.

Facing a basket of currencies, the dollar rose from a nine-week high to 96.267.

The pound hit a low of $ 1.2865 in seven weeks, after falling 0.8% overnight. It was still a little higher at $ 1.2892.

The yen got the usual safe haven bid, with the euro sliding to its lowest level in two months, to 127.68 yen. Even the high-flying dollar slumped to 112 yen.

Oil prices have fallen in the face of worries about global growth. Brent fell 69 cents to 75.48 dollars a barrel, while the US crude dropped 54 cents to 66.28 dollars.

Spot gold was a little firmer at $ 1,236.52 an ounce.