Asian Markets Tumble Following U.S. Rout

May 19, 2022
Arjun Pandit
Asian markets tumbled following the broad U.S. market selloff. Japan recorded its ninth monthly trade deficit in a row on rising energy prices. In Hong Kong, Ten Cents dropped after earnings were cut in half. In India, tech stocks led the decliners. Australian retail stocks led the losers.

U.S. indexes dropped sharply on the growing worries that financially strapped consumers, supply disrupted companies, and elevated energy prices are slowing the economy faster than anticipated by investors.

European markets declined more than 1% after the U.K. inflation accelerated in April to the fastest pace in nearly four decades. Elevated energy prices and supply chain disruptions also weighed on the market sentiment.

U.S. indexes turned negative after Target Corp reported lower earnings on rising costs and supply disruptions. Target plunged 25% and stocks in the retail sector plunged.

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Asian markets closed mixed after Japan's economy contracted less than expected in the first quarter and industrial production rose. Resource and energy stocks lifted the Australian index 1%.

U.S. stocks rebounded from the lows after steep losses in the last six weeks. Tech stocks led the advance and investors searched for bargains in tech and transportations sectors.

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U.S. market indexes gained after three days of lackluster trading. Stocks in technology, resource, and consumer sectors drove the advance. Crude oil and U.S. benchmark bond yields increased. Home Depot and Walmart reported diverging quarterly results.



In choppy trading market indexes lacked direction as stock market battled inflation worries, crude oil advanced on higher demand expectations, and the bond market forecasted rising rates.

U.S. market indexes were on the defensive after retail sales declined and production contracted in China. European markets edged lower after economic growth in the euro zone was lowered and German wholesale prices surged at the fastest pace since 1962.

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Asian markets traded in a tight range with negative bias after April sales declined more than expected and production contracted in China. Switzerland-based Holcim agreed to sell its stakes in India for $10 billion.

Rebound in tech stocks in New York spread to the energy patch and lifted market indexes in Europe trimming weekly losses. Germany led the market advance in Europe. Crude oil jumped 4% inching closer to a 10-year high.

U.S. stocks advanced in pre-market trading after bargain hunters returned searching for stock in the beaten down tech stocks. Energy gained on the sustained rise in crude oil prices. European industrial production falls in April. Asian markets react to local news.

In wild trading on Wall Street, stocks sank deeper in the morning but almost managed to erase the day's gain. Jittery investors worry that the lagging Fed response may only make it harder to tame inflation later.

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Stocks recovered from early losses but rate jitters dominated the market sentiment after wholesale price remained elevated in April. Global markets are extending losses in the year on the back of relentless selling in tech stocks in Europe, Japan, Hong Kong, Korea, and India.

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April inflation data stoked worries that the Fed may have to act sooner and harsher than later and lighter in taming inflation. Stocks plunged in the afternoon after a failed attempt to rally and Apple, Microsoft, Tesla, and Meta dropped between 4% and 7%.