Nikkei 225 slipped 0.8% to 39,511.88, S&P/ASX 200 slid 1.3% to 7,788.20, Kospi lost 1.3% to 2,716.65, Hang Seng shed 0.6% to 16,832.52, while the Shanghai Composite declined 0.3% to 3,066.66
Asian shares mostly declined Wednesday after Wall Street slipped, hitting pause on a strong rally.
Japan’s benchmark Nikkei 225 slipped 0.8% in morning trading to 39,511.88. Sydney’s S&P/ASX 200 slid 1.3% to 7,788.20. South Korea’s Kospi lost 1.3% to 2,716.65. Hong Kong’s Hang Seng shed 0.6% to 16,832.52, while the Shanghai Composite declined 0.3% to 3,066.66.
Analysts said concerns were growing that what rattled Wall Street might spread to Asia, despite recent comparatively positive economic indications from China.
Investors are grappling with the possibility that this turbulence could mark the beginning of a more significant correction in the markets, according to Stephen Innes, managing partner at SPI Asset Management.
China has an ambitious target of nearly 5% economic growth this year, seeking to put behind recent troubles in the property sector and the lingering effects of the disruptions that came from the pandemic.
On Wall Street, the S&P 500 lost 37.96 points, or 0.7% to 5,205.81 for its worst day in four weeks. It was its second consecutive decline after setting an all-time high to close last week.
Other indexes did worse. The DJIA shed 396.61 points, or 1%, to 39,170.24 and likewise pulled further from its record. The Nasdaq composite shed 156.38, or 1%, to 16,240.45, and the small stocks in the Russell 2000 index lost 1.8%.
Health insurance companies led the market down on concerns about their upcoming profits after the U.S. government announced lower-than-expected rates for Medicare Advantage. Humana slipped 13.4%. Tesla, meanwhile, lost 4.9% after delivering fewer vehicles for the start of 2024 than analysts anticipated.
One of the big reasons the U.S. stock market has risen since late October is the expectation that the Fed will trim interest rates several times this year.
