Sharp stock market crash in Hong Kong after tech crash on Wall Street – E24

The downturn in the Asian stock markets affected the morning twig. But the decline is somewhat less dramatic than on the US stock markets the night before.

This is the situation on the Asian stock exchanges at 05.30:

• The Nikkei 225 in Tokyo is up 0.12 percent
• Hang Seng in Hong Kong is down 3.85 percent
• Kospi in Seoul falls 1.36 percent
• Shanghai Composite falls 2.31 percent
• Shenzhen Composite is down 2.32 percent
• The FTSE Straits Times in Singapore is down 1.33 percent
• The ASX 200 in Sydney is down 2.42 percent

Heavy tech fall in Hong Kong

The development is characterized by the US stock markets falling sharply the night before. Technology-heavy Nasdaq eventually ended down 4.99 percent, the worst fall since 2020.

The decline in technology continues in Hong Kong, where the tech index is down five percent. The giant Tencent is falling 4.4 percent at the time of writing, while the e-commerce giant Alibaba is down six percent.

Electric car manufacturers are also falling heavily after, among other things, Tesla fell the night before. In Hong Kong, the challenger Nio is down 12 percent, while lesser-known Xpeng is down more than ten percent.

– Probably went a step too far

Several experts point out that the downturn in the US and later Asia comes in the wake of the sharp rise on Wall Street on Wednesday. Then the stock markets rose after the Fed chief Jerome Powell stated that the bank does not consider interest rate increases of 0.75 percent now.

“Without any obvious news flow to explain the creation of the reversal, it instead looks like the easing of Powell’s indications was probably a step too far and allowed for a new focus on high inflation and the challenging growth forecasts,” writes National Australia Bank economist Taylor Nugent in a note, according to CNBC.

Chief strategist Christian Lie in Formue said on Thursday night that he thought the market was about to “wake up to a new reality”. He believed that the intoxication of happiness on Wednesday overshadowed the fact that the US Federal Reserve announced several double interest rate jumps (0.50 percentage points) in the future.

This uncertainty will also contribute to many investors choosing to make a profit, but instead of the classic “buy the dip” strategy, they sell on the stock market rises.

– It is a clear sign of uncertainty, Lie said and pointed to a widespread pessimism among investors.

–