Canberra, Mar. 8, (dpa-AFX/GNA) – Asian stocks fell broadly on Tuesday amid worries about inflation and mounting risk of a global economic slowdown – often called stagflation.
There was no major progress in the peace talks between Ukraine and Russia and oil prices rose about 2% in Asian trade, weighing on sentiment.
Chinese stocks tumbled amid concerns over inflation, risks from the Russia-Ukraine war and rising Covid-19 cases in mainland China and Hong Kong.
The benchmark Shanghai Composite index dropped 79.33 points, or 2.35%, to 3,293.53 while Hong Kong’s Hang Seng index fell 291.76 points, or 1.39%, to 20,765.87.
Japanese shares hit a 16-month low amid worries that higher input costs may weigh on profit margins in the near term. The Nikkei average fell 430.46 points, or 1.71%, to 24,790.95, its lowest close since November 6, 2020. The broader Topix index ended 1.90% lower at 1,759.86.
Hino Motors led losses to end down more than 12% while heavyweight SoftBank Group plunged 5% and Uniqlo operator Fast Retailing declined 2.7%.
Banks Sumitomo Mitsui Financial, Mitsubishi UFJ Financial and Mizuho Financial gave up 3-5%.
Australian markets ended notably lower despite upbeat business sentiment numbers from National Australia Bank.
Mining and energy stocks fell on profit-taking as surging commodity prices fanned fears of runaway inflation, slowing economic growth and pressure on corporate earnings.
The benchmark S&P/ASX 200 shed 58.30 points, or 0.83%, to close at 6,980.30 while the broader All Ordinaries index closed 0.93% lower at 7,252.90. Mining heavyweights BHP and Rio Tinto ended down 3.7% and 4.3%, respectively.
In the energy sector, Woodside Petroleum, Santos and Beach Energy all fell around 4%.
Seoul stocks ended lower for a third straight session on concerns that Russia’s invasion of Ukraine may hamper the post-pandemic economic recovery. The Kospi average slid 28.91 points, or 1.09%, to close at 2,622.40.
Samsung Electronics, SK Hynix, LG Chem and POSCO gave up 1-3%.
New Zealand shares tumbled in the face of bigger worries about inflation, as short-dated government bond yields hit new highs and ANZ Bank forecast hikes of 50 basis points at both the April and May policy meetings.
The benchmark S&P/NZX 50 index dropped 168.32 points, or 1.41%, to 11,744.95.
Heartland Group Holdings, Air New Zealand and Skellerup Holdings lost 5-7%. U.S. stocks fell for a third straight session overnight amid heightening economic risks from the Ukraine crisis.
The Dow dropped 2.4% and the S&P 500 shed 3% to 11 and eight-month closing lows, respectively while the tech-heavy Nasdaq Composite tumbled 3.6% to end at its lowest level in a year.
GNA