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Global markets recently experienced a significant sell-off, with Asia-Pacific markets following suit after Wall Street saw substantial losses.
Market Performance
The S&P 500 and Nasdaq Composite recorded their worst days since 2022, with the former losing 2.31% and the latter sliding 3.64%. Tech stocks, including Nvidia, Meta Platforms, and Alphabet, faced notable declines, while Tesla shares plummeted by 12.3% due to weaker-than-expected results and a 7% year-over-year drop in auto revenue.
- The sell-off in tech names contributed to the overall market downturn, reflecting investor concerns about the performance of these high-growth companies.
South Korea’s advance second-quarter GDP numbers came in slightly below expectations, with the country’s GDP growing 2.3% year on year, lower than the 2.5% expected by economists. On a quarter-on-quarter basis, the economy shrank by 0.2%, compared to a 0.1% rise expected in the Reuters poll.
- This reversal from the first quarter’s growth of 1.3% had a notable impact on the country’s stock market, as the Kospi lost 1.8% and the Kosdaq was down 2.32%.
- The market was particularly affected by heavyweight SK Hynix, which fell by 6%, despite the company reporting all-time high quarterly revenue and operating profit, marking a gain of 125% from a year ago.
Japan’s Nikkei 225 extended its six-day losing streak, plunging by 2.64%, while the Topix also tumbled by 2.24%. The market’s top loser was SoftBank Group, which nosedived by 7%.
- Additionally, the yen marked a fourth-straight day of strengthening against the U.S. dollar, climbing to 153.09 against the greenback.
Australia’s S&P/ASX 200 experienced a 0.86% decline, while Hong Kong’s Hang Seng index futures were lower than the HSI’s last close of 17,311.05, indicating a potential continuation of the market downturn in the region.
- Meanwhile, Taiwan’s market remained closed for a second day as the island braced for Typhoon Gaemi.
- These varied market performances across different Asian countries underscore the widespread impact of the market sell-off and economic indicators on regional financial markets.
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