Investing
Asian stocks hit by recession fears, Alibaba leads tech rout
© Reuters.
By Ambar Warrick
Investing.com– Most Asian stock markets retreated on Thursday, tracking overnight losses on Wall Street as 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.
Hong Kong’s index was among the worst performers for the day, down about 0.5% due to a 3% drop in shares of Alibaba 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 Prosus (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 gold.
led losses across Southeast Asian markets with a 1% drop, while Australia’s fell 0.3%.
Substantially for March fueled bets that the Reserve Bank of Australia may not yet be done with raising interest rates, despite announcing a pause earlier this month.
Read the full article here
-
Side Hustles6 days ago
3 Steps You Can’t Miss When Growing Your Business
-
Make Money7 days ago
15 Jobs That Will Shrink the Fastest Over the Next Decade
-
Side Hustles7 days ago
How to Maximize Your Profits With This Annual 8-Step Checklist
-
Investing7 days ago
Netherlands stocks lower at close of trade; AEX down 0.80% By Investing.com
-
Side Hustles7 days ago
Want to Start a Business? Consider Buying One Instead — Here’s Why.
-
Passive Income7 days ago
Why Email Marketing Is Still Your Business’s Most Powerful Tool
-
Investing6 days ago
Germany stocks lower at close of trade; DAX down 0.65% By Investing.com
-
Investing6 days ago
How I Transformed My Business by Letting Go of Low-Value Tasks