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HONG KONG – Asian markets followed Wall Street's sharp decline on Thursday, as investors feared the end of a series of good news, which had long been stimulating purchases.
The region has experienced a general decline. China, Japan, Hong Kong, South Korea and other markets recorded a decline of about 3% in the Standard & Poor's 500 index in the United States on Wednesday.
We did not know where the sale would go. While European equities seemed poised to fall, futures markets following US stocks have risen slightly, suggesting that Wall Street could host talks Thursday morning in a more positive mood. .
In the US, stocks turned negative on Wednesday, in part because of concerns over rising interest rates and risks to the economy in general.
The decline in Asia has been longer and more pronounced. In some respects, the region entered the bear market, meaning it fell by 20% or more. A broad equity index in the Asia-Pacific region, followed by MSCI, an investment information company, lost a fifth of its January summit on Thursday.
Asian equities this year have been faster to reflect investors' concerns about global economic health. Growth of China slows down, which could slow down activity in the region, if it is in the world. Concern over the impact of the growing trade war between President Trump and China has also led to a decline in equities, although the actual damage suffered so far by the Chinese economy seems modest.
Investors also turned to tech companies in the region, including China, where stock buyers once drove internet giants such as Alibaba Group and Tencent Holdings to comparable valuations to Silicon Valley's , like Facebook. Thursday, Alibaba and Tencent were among the companies that saw their shares fall significantly.
In South Korea, investors reacted negatively to SK Hynix's prediction, a major chip maker, warning that prices for one type of chip called flash memory will continue to fall next year, due to the drop in smartphone application. Flash memory chips are used in smartphones and a number of mobile devices, and the demand for these components is considered a rough indicator of the health of the technology hardware sector.
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