Stocks in Asia Sharply Lower After Wall Street Plunge

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Stock markets in Asia and Australia mostly fell sharply on Friday. Following on from the US markets, concerns about higher interest rates and the approaching debt ceiling for the United States weighed on key indicators.

 

Tokyo’s Nikkei 225 closed 2.3 percent lower at 28,771.07, despite a new report from the Bank of Japan pointing to growing business confidence in the industry. But the same Tankan report also showed that corporate buying and selling prices had risen sharply, fueling fears of further inflation.

Red price signs were also seen on other stock exchanges. For example, the All Ordinaries in Sydney lost 2 percent and the Kospi in Seoul was 1.6 percent lower.

What is involved in the phasing out of stimulus measures for the economy by several central banks? The US central bank, among others, announced that the time to start with this had almost arrived, at which point interest rates started to rise. There may also be concerns about the US debt ceiling, the maximum amount that the government can borrow in the US. Without increasing that limit, the country will soon no longer be able to borrow, with repercussions for the global economy.

The stock exchanges in China and Hong Kong are closed for national holidays. In addition, due to the so-called Golden Week, in honour of the foundation of the People’s Republic, the stock exchanges there will not open again until next week.

In China, the impending bankruptcy of real estate conglomerate Evergrande dominated sentiment in recent days. There are also concerns about electricity shortages, which could slow down economic growth

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