empty
24.02.2021 12:24 PM
Asian stocks plunge in early trading on Wednesday

This image is no longer relevant

Shares in Asia-Pacific fell during early trading on Wednesday. All major stocks plunged due to a number of reasons.

Market participants expect the leading regulators in the region to review their ultra-easy monetary policies in the near future amid an increase in the inflation rate. The recent sharp rise in bond yields has had a profound effect on the entire stock market.

The new stimulus package aimed to provide solid support for the economy is the reason for growing inflation concerns. A rise in bond yields is pushing inflation to levels unseen for decades.

Meanwhile, Fed's Chair Jerome Powell announced plans to keep US monetary policy dovish in the short term. Earlier, the central bank loosened its monetary policy in order to help the American economy to go through the crisis provoked by the coronavirus pandemic. On top of that, the US inflation rate, as well as the labor market, has not yet returned to its target levels. Moreover, the indicators are far from reaching the target. This fact causes concerns over an early economic recovery.

Asian markets doubt that interest rates in the United States will remain on a low level. They are mostly concerned about rising bond yields.

The Nikkei 225 lost 1.29%.

China's SSE Composite Index dropped by 1.66%. The Hang Seng Index fell by 2.85%. It became known that the Hong Kong authorities intend to allocate some HK$120 billion, or $15.5 billion, this year in order to support the regional economy that has been in recession for the last two years. The previous fiscal year will end up in March 2021. Over tthis period of time, the budget deficit of Hong Kong has expanded to the highest level of HK$257.6 billion. According to preliminary forecasts, the deficit is likely to decrease to HK$101.6 billion if the government approves larger stimulus measures.

The Korea Composite Stock Price Index (Kospi) plunged by 1.8%.

Australia's S&P/ASX 200 index fell by 0.9%.

Maria Shablon,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for May 27

US President Donald Trump announced a 50% tariff on imports from the EU, yet financial markets responded with restraint. Investors are increasingly adopting a "threat and retreat" strategy, buying stocks

Ekaterina Kiseleva 11:54 2025-05-27 UTC+2

Nvidia on the agenda: markets await quarterly report, dollar nears fifth straight monthly decline

Stock markets showed mixed dynamics on Tuesday after Donald Trump unexpectedly postponed the introduction of the promised 50% tariffs on goods from the European Union. The move only increased uncertainty

Thomas Frank 11:31 2025-05-27 UTC+2

Gold at $4,200? Why the Market Is Once Again Preparing for a Historic Rally

The gold market has recently been highly volatile, with dramatic movements in both directions. After breaking above $3,000 per ounce, the metal entered a phase of heightened volatility—testing resistance

Anna Zotova 00:23 2025-05-27 UTC+2

Bitcoin hesitates whether to pull back to $100,000 or climb to $115,000

The world's first cryptocurrency finds itself in limbo. After a recent rally, it pulled back and then settled. At the moment, Bitcoin is at a crossroads, with market participants closely

Larisa Kolesnikova 15:16 2025-05-26 UTC+2

All eyes on Nvidia as markets brace for fresh turbulence

Nvidia's results, the final earnings report from the Magnificent Seven, are set for release on Wednesday. Meanwhile, Donald Trump and European markets are back to square one. The 30-year

12:58 2025-05-26 UTC+2

US Market News Digest for May 26

Investors have resumed buying shares of Freeport-McMoRan Copper & Gold following the end of its correction phase and subsequent consolidation. Optimism is fueled by technical signals and stabilization

Ekaterina Kiseleva 12:01 2025-05-26 UTC+2

The Nvidia Effect: Can Markets Withstand the Latest Wave of Pressure?

Nvidia results due Wednesday, last of Magnificent 7 earnings Donald Trump and European markets back to square one 30-year Treasury yields top 5% in a week S&P 500 falls more

Thomas Frank 08:44 2025-05-26 UTC+2

US Market News Digest for May 23

The May 23 outlook for the S&P 500 suggests consolidation just below the resistance level near 5,908. Under favorable conditions, the index has the potential to rise towards the 6,318

Ekaterina Kiseleva 12:16 2025-05-23 UTC+2

Tech on the Rise: Snowflake, Alphabet Shine as Solar Sector Slumps

U.S. stock markets closed Thursday with little movement, recovering from earlier declines as bond yields dipped from recent highs. This shift came in the wake of the House of Representatives'

Thomas Frank 11:09 2025-05-23 UTC+2

Dow sheds nearly 2% as Wolfspeed, Target, and UnitedHealth drag market into crisis

Indices: The Dow plunged 1.91%, the S&P 500 dropped 1.61%, and the Nasdaq fell 1.41%. Wolfspeed tumbled following reports of a potential bankruptcy. Target sank after cutting its full-year sales

13:01 2025-05-22 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.