Asian stocks mostly dropped on Thursday, following Wall Street’s third consecutive day of losses as investors remain cautious about the global economic outlook and corporate earnings. Concerns over slowing global growth and uncertainty surrounding interest rates have continued to dampen market sentiment across the region.
The decline in Asian indices was largely driven by negative cues from the U.S., where earnings reports have failed to provide sufficient reassurance, and higher borrowing costs are expected to put additional pressure on businesses. Both the S&P 500 and Dow Jones continued to slide, with fears of persistent inflation and the Federal Reserve’s interest rate trajectory dominating market concerns.
In Japan, the Nikkei 225 lost ground as exporters were hit by a strengthening yen, which rose as investors sought safe-haven assets. South Korea’s Kospi and Hong Kong’s Hang Seng also followed suit, with losses driven by worries about weakening demand in critical sectors such as technology and manufacturing.
In China, markets were mixed, with the Shanghai Composite dipping slightly as investors weighed ongoing economic challenges against potential policy support from the government. Australia’s ASX 200 mirrored the broader trend, closing lower on declines in mining and banking stocks.
As the U.S. earnings season continues, global economic concerns and tighter financial conditions are contributing to increased risk aversion among investors. The market’s short-term outlook remains uncertain as traders react to macroeconomic data and signals from central banks. With inflation still a concern and potential rate hikes by the Federal Reserve on the horizon, Asian markets are bracing for more volatility. U.S. economic policies are expected to play a significant role in shaping global market performance in the weeks ahead, as investors keep an eye on corporate earnings and economic indicators to assess the strength of the global recovery.
