Asian markets retreated on Tuesday on worries that accelerating US inflation could lead to interest rate hikes sooner than expected. Japanese Nikkei sank 909.75 points or 3.08%. while Hang Seng also plunged over 2%.
Overnight, US indices closed with losses led by technology stocks as Nasdaq fell over 2.5% its worst day since March. Dow Jones gave up intraday gains of over 300 points to close marginally lower by 30 points. This, as commodities hit fresh 10 year highs with the market, fear that overheating could see higher inflation as cost pressure on consumers bound to be higher.
Other Asian indices will also saw profit booking as markets had seen substantial gains. Korean Kospi ended 1.23% lower and Australian ASX 200 dropped 1.06%. SGX Nifty and Indian Nifty 50 also were over 0.7% lower. Markets in Jakarta, Malaysia, New Zealand and Thailand also ended lower.
Chinese mainland markets ended in the green with Shanghai Composite ending 0.4% higher and Shenzhen advancing 0.35%.
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