Stocks in Asia declined on Thursday following a drop in U.S. stocks, which were weighed down by higher bond yields. The Dow Jones Industrial Average fell by more than 400 points.
In Tokyo, the Nikkei 225 dropped 1.5% to 37,980.55, while Hong Kong’s Hang Seng declined 0.6% to 18,362.23. The Shanghai Composite index edged slightly higher by less than 0.1% to 3,113.06.
Australia’s S&P/ASX 200 slipped 0.4% to 7,632.10, and South Korea’s Kospi sank 0.9% to 2,652.98. Taiwan’s Taiex lost 0.8%.
Mizuho Bank noted in a commentary that unexpectedly high global inflation seems to be affecting asset markets negatively.
Electronic stock board (Via Jonathon Cummins/Getty Images)
This development is causing concerns about the potential impact of higher interest rates on demand.
On Wednesday, the S&P 500 fell 0.7% to 5,266.95, reducing its gains for May, which had been on track to be its best month since November. Four out of five stocks in the index saw declines.
The Dow Jones Industrial Average declined 1.1% to 38,441.54, while the Nasdaq composite slipped 0.6% to 16,920.58 after reaching its latest all-time high.
American Airlines Group led a downturn in airline stocks after lowering its profit and financial targets for the spring. The airline mentioned that while fuel costs might be slightly lower than expected, an important revenue trend would likely be affected negatively. Consequently, shares fell by 13.5%.
