Home

Published

- 2 min read

Global Stocks Tumble: Asian Slump Follows Wall Street's End-of-Streak Slide

NasdaqFedExWall StreetBusinessS&P 500Dow JonesMarket
img of Global Stocks Tumble: Asian Slump Follows Wall Street's End-of-Streak Slide
▶ READ: Activision Blizzard Settles Discrimination Claims for $54 Million

Asian Shares Slip as Wall Street Pauses Rally

Market Overview

Asian shares experienced a decline on Thursday as Wall Street applied the brakes to its substantial rally due to disappointing corporate profit reports and concerns about the market’s rapid surge.

Regional Performance

  • Tokyo’s Nikkei 225 index dropped 1.6% to 33,140.47.
  • Japanese automaker Toyota led losses, falling as much as 4% due to a vehicle recall affecting 1 million units.
  • Toyota subsidiary Daihatsu suspended shipments after an investigation revealed improper safety testing, prompting Japanese transport ministry officials to raid Daihatsu’s offices.
  • Australia’s S&P/ASX 200 slipped 0.5% to 7,504.10.
  • South Korea’s Kospi shed 0.6% to 2,600.02.
  • Hong Kong’s Hang Seng remained flat at 16,617.87.
  • Shanghai Composite added 0.6% to 2,918.71.
  • India’s Sensex was 0.2% higher, and Bangkok’s SET gained 0.2%.

Wall Street Impact

Wednesday saw widespread losses on Wall Street, with approximately 95% of S&P 500 companies experiencing declines.

  • The S&P 500 slumped 1.5% to 4,698.35.
  • The Dow Jones Industrial Average dropped 1.3% to 37,082.00.
  • The Nasdaq composite sank 1.5% to 14,777.94.

Corporate Influences

  • FedEx’s stock tumbled 12.1% after reporting weaker revenue and profit, leading to concerns about potential weaker demand globally.
  • Winnebago Industries’ stock dropped 5.6% after falling short of profit expectations.
  • General Mills reported stronger profit but saw its stock fall 3.6% due to revenue missing expectations.

Economic Indicators

Despite corporate challenges, reports suggest the U.S. economy may be in better shape than anticipated, with improved consumer confidence in December and stronger-than-expected sales of previously occupied homes in November.

Encouraging signs of global inflation cooling are evident, particularly in the United Kingdom, where inflation unexpectedly slowed to 3.9%, its lowest level since 2021.

Central Banks’ Response

As inflation pressures ease, hopes rise that central banks globally can pivot in 2024 from aggressive interest rate hikes. The Federal Reserve is expected to decrease its main interest rate by at least 1.50 percentage points in 2024 from its current range of 5.25% to 5.50%, the highest in more than two decades.

  • Treasury yields have been declining since late October, reflecting optimism about central banks’ potential policy shifts.
  • U.S. benchmark crude oil was down 8 cents at $74.14 per barrel.
  • The U.S. dollar fell to 143.15 Japanese yen, while the euro rose to $1.0945.

By Joel Jackson