Asian Markets Drop Following Record Losses of Wall Street


On Tuesday morning, stock markets in the Pacific region and Asia fell as the global equity rout continued for its third day.

According to London Capital Group, Nikkei 225 of Japan experienced a huge loss of 4.73 percent in Tuesday trading, the worst points decline of the company since 1990, after both the Dow Jones Industrial Average and the S&P 500 suffered their highest single-day points drops in history.

In a warning sign for the mining-heavy FTSE 100, the ASX 200 index of the Australian Stock Exchange observed a 3.3 percent drop that is driven by huge falls in industrials and energy stocks.

The Hang Seng composite index of Hong Kong observed a mirror-image 4.77 percent loss, with only six of its almost 500 constituent companies in the black.

The composite index of the Shanghai Stock Exchange also recorded a sharp 3.4 percent loss, after staying immune on Monday. The 4.44 percent loss of Shenzhen continued its earlier huge losses.

Last Friday, markets were spooked by signs of a sharp decline in inflationary pressure in the United States, prompting concerns that the Federal Reserve will toughen monetary policy faster than what was originally expected.

While the bond yields across the globe appear to have retreated after spiking to multi-year highs during the end of last week, turmoil persisted on equity markets following an extended period in which prices only appeared to move in a single direction.

Some investors have jumped on the data as a trigger for a correction in equity markets.