Shares in Asia retreated on Thursday following a decline in U.S. stocks due to higher yields in the bond market. The Dow Jones Industrial Average dropped over 400 points, leading to negative performances across major Asian markets.
In Tokyo, the Nikkei 225 benchmark fell by 1.3% to 38,054.13, while the Hang Seng in Hong Kong declined by 1.4% to 18,217.83. The Shanghai Composite index also experienced losses, dropping 0.6% to 3,091.68.
Australia's S&P/ASX 200 slipped by 0.5% to 7,628.20, and the Kospi in Seoul sank by 1.6% to 2,635.44. Taiwan's Taiex and India's Sensex were also lower by 1.4% and 0.5%, respectively.
The market sentiment was influenced by concerns over global inflation exceeding expectations, leading to a pullback in asset markets. The S&P 500 and Dow industrials in the U.S. both experienced declines, with four out of every five stocks in the index dropping.
American Airlines Group and ConocoPhillips were among the companies that faced significant stock price declines. On the other hand, Marathon Oil saw an increase in its stock value following an all-stock deal with ConocoPhillips.
Higher Treasury yields, which rose to 4.61%, also impacted the stock market negatively. The Federal Reserve's efforts to manage inflation while supporting economic growth have led to uncertainty among traders regarding future interest rate cuts.
Despite challenges in consumer spending and rising costs for businesses, economists remain optimistic about the job market and overall economic stability. U.S. stocks have continued to set records, driven by the performance of AI technology-related companies like Nvidia.
In the commodities market, U.S. benchmark crude oil and Brent crude both experienced declines in prices. The U.S. dollar also weakened against the Japanese yen and the euro.
