Asian shares mostly declined on Wednesday following Wall Street's worst day in weeks, breaking its record-breaking bull run. Japan's Nikkei 225 slid 0.8%, Sydney's S&P/ASX 200 slipped 1.3%, South Korea's Kospi dropped 1.4%, Hong Kong's Hang Seng lost 1.1%, and the Shanghai Composite fell 0.2%.
Analysts expressed concerns that the turbulence in Wall Street might spread to Asia, despite recent positive economic signs from China. China aims for around 5% economic growth this year to overcome challenges in the property sector and pandemic disruptions.
On Wall Street, the S&P 500 fell 0.7%, the Dow Jones lost 1%, the Nasdaq dropped 1%, and the Russell 2000 tumbled 1.8%. Health insurance companies and Tesla were among the top losers.
Investors have adjusted their expectations for Federal Reserve interest rate cuts, with a possibility of just two cuts this year due to the stronger-than-expected U.S. economy. The bond market saw a rise in the 10-year Treasury yield and a slip in the two-year yield.
High interest rates can slow the economy and impact investment prices. Bitcoin fell 5.4% amid concerns about high interest rates and the stock market's valuation. Energy trading showed benchmark U.S. crude adding 3 cents and Brent crude rising 10 cents.
In currency trading, the U.S. dollar rose against the Japanese yen, while the euro also saw a slight increase.
