Thu, 24 Jun 2021

Asia follows in steps of Wall Street, stocks tumble

Lola Evans
13 May 2021, 17:42 GMT+10

SYDNEY, NSW, Australia - Stocks across Asia tumbled on Thursday, following major losses on Wall Street overnight, on the back of inflation fears.

TMS Capital portfolio manager Ben Clark said Thursday the inflation jitters that roiled the market back in late February had returned with gusto.

"Fund managers were talking about this three or four months ago, but the inflation data back then was quite benign, and it all went on the backburner," he told The Sydney Morning Herald Thursday.

"Equities are still probably being priced off this ultra-low rate assumption from six months ago, and now there's this growing view that this might not be the case, and we might have to revisit those valuations," Clark added.

The Nikkei 225 in Japan was the loss leader on Thursday, losing 699.50 points or 2.49 percent to 27,448.01.

The Australian All Ordinaries lost 72.10 points or 0.99 percent to close Thursday at 7,209.40.

China's Shanghai Composite declined 33.22 points or 0.96 percent to 3,429.54.

The Hang Seng in Hong Kong shed 482.69 points or 1.71 percent to 27,748.35.

The U.S. dollar remained well bid on Thursday during the Asian trading zone. The euro however nudged a little higher to 1.2090 by the Sydney close. The British pound traded at 1.4049. The Japanese yen was a tad lower at 109.63. The Swiss franc was soft at 0.9083.

The Canadian dollar was a touch lower at 1.2133. The Australian and New Zealand dollars were little changed at 0.7730 and 07171 respectively.

Overnight on Wall Street, the Dow Jones plummeted 681.50 points or 1.99 percent to 33,587.66. The key index has now lost 1,156 points in just two days.

The Standard and Poors 500 did worst in percentage terms, diving 89.06 points or 2.14 percent to 4,063.04.

The Nasdaq Composite, percentage-wise, fared worst of all, shedding 357.75 points or 2.67 percent to 13,031.68.

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