STREAMING NOW: Watch Now

Asia stocks sink after Wall Street's Christmas Eve plunge

Wall Street's Christmas rout spilled into Asia.Japan's ...

Posted: Dec 26, 2018 8:56 AM
Updated: Dec 26, 2018 8:56 AM

Wall Street's Christmas rout spilled into Asia.

Japan's Nikkei plummeted 5% on Tuesday, dragging the index into a bear market. In China, the Shanghai Composite dropped as much as 2.5% before recovering some of its losses to close down 0.9%.

Banking, finance and investments

Business, economy and trade

Donald Trump

Economic indicators

Economy and economic indicators

Financial markets and investing

Political Figures - US

Securities trading

Stock indexes

Stock markets

Asia

Continents and regions

China

East Asia

North America

The Americas

United States

Wall Street

Christmas

Holidays and observances

The declines in Asia followed another brutal day for US stock markets, which fell more than 2% in a shortened trading session. The Dow, which sank 2.9%, and the S&P 500, which lost 2.7%, suffered their biggest Christmas Eve declines ever.

"The market is getting pummeled from every direction," said Stephen Innes, head of Asia-Pacific trading for online broker Oanda.

Investors are getting increasingly concerned about a slowdown in global economic growth, according to market experts. Those worries have been intensified by US President Donald Trump's attacks on Federal Reserve Chairman Jerome Powell for continuing to raise interest rates.

US stocks went into a tailspin Monday after Trump tweeted that "the only problem our economy has is the Fed," stoking fears he may fire Powell.

The turmoil on Wall Street is infecting other big markets because of concerns that problems in the US economy — the world's biggest — could hit major trading partners such as Japan and weigh on companies' profits, said Hirokazu Kabeya, chief global strategist at Daiwa Securities in Tokyo.

Investors around the world already have plenty to worry about, including China's economic slowdown, the unresolved US-China trade war and Brexit's unpredictable outcome.

Despite strong growth this year, the US economy has become a wild card in recent weeks as investors have fretted about the combination of slowing growth and rising interest rates. US stocks are on pace for their worst December since the Great Depression.

US Treasury Secretary Steven Mnuchin added to the uncertainty on Sunday by releasing an unusual statement saying he had called the CEOs of the biggest American banks. He said the executives assured him their banks are healthy and have "ample liquidity" to lend to consumers and businesses. "Markets continue to function properly," Mnuchin said.

The use of words typically reserved for times of crisis — even though there were no outward signs of one — spooked investors.

"This is the type of announcement that raises the question of whether Treasury sees problems that the rest of the market is missing," Cowen & Co. analyst Jaret Seiberg wrote in a note to clients.

The partial US government shutdown has added to the sense of disarray.

Multiple major stock markets in the Asia-Pacific region were closed Tuesday for Christmas, including Hong Kong, Australia and South Korea. Most European markets are also shut, while US markets are due to reopen on Wednesday.

Kabeya said he's skeptical investors' downbeat mood will improve before the end of the year.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 37210

Reported Deaths: 1495
CountyConfirmedDeaths
Hennepin12048782
Ramsey4777222
Stearns231219
Dakota224890
Anoka2155107
Nobles16616
Olmsted107615
Washington104840
Mower9322
Rice8277
Scott6844
Clay58037
Kandiyohi5661
Wright4535
Blue Earth4422
Todd4002
Carver3611
Lyon3052
Sherburne3035
Freeborn2890
Steele2231
Watonwan2150
Benton2123
St. Louis17415
Martin1615
Nicollet15512
Cottonwood1340
Goodhue1278
Winona12015
Crow Wing10412
Pine1030
Chisago971
Otter Tail921
Le Sueur911
McLeod850
Carlton830
Dodge830
Unassigned8237
Polk812
Chippewa761
Isanti650
Itasca6412
Waseca620
Douglas610
Meeker591
Morrison591
Becker550
Jackson550
Faribault540
Murray540
Sibley532
Pennington510
Mille Lacs342
Brown312
Pipestone311
Wabasha310
Beltrami290
Rock290
Yellow Medicine290
Renville282
Fillmore270
Houston250
Swift211
Norman200
Wilkin203
Redwood170
Wadena150
Aitkin140
Big Stone140
Cass142
Kanabec141
Koochiching141
Marshall120
Grant100
Lincoln100
Pope100
Roseau100
Clearwater70
Mahnomen71
Lake60
Hubbard50
Traverse50
Lac qui Parle40
Stevens40
Red Lake30
Kittson20
Cook10
Lake of the Woods00

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 30173

Reported Deaths: 718
CountyConfirmedDeaths
Polk6275178
Woodbury320144
Black Hawk218058
Buena Vista170511
Linn123882
Johnson12318
Dallas122329
Marshall103519
Story7463
Pottawattamie71911
Scott70410
Wapello70230
Crawford6752
Muscatine62444
Dubuque60922
Sioux4610
Tama45829
Wright3771
Louisa36013
Jasper32117
Plymouth3134
Dickinson2592
Warren2581
Washington2349
Hamilton1871
Webster1702
Boone1421
Cerro Gordo1381
Clarke1272
Clay1270
Allamakee1264
Mahaska11517
Shelby1110
Clinton1041
Poweshiek1048
Pocahontas931
Carroll911
Bremer906
Des Moines862
Henry853
Franklin840
Cedar801
Taylor790
Emmet780
Cherokee751
Monona740
Floyd682
Marion680
Hardin650
Guthrie644
Sac630
Benton621
Jefferson580
Osceola580
Jones560
Harrison530
Humboldt531
Butler522
Buchanan511
Iowa510
Lee502
Monroe506
Hancock490
Calhoun482
Delaware481
Lyon400
Madison402
Clayton393
Davis391
Mills360
Palo Alto360
Winneshiek360
Grundy350
Fayette340
Mitchell340
Kossuth330
Lucas304
Greene280
Howard280
Chickasaw270
Jackson270
Union270
Winnebago270
Ida230
Cass210
Appanoose203
Keokuk201
Page200
Van Buren190
Audubon161
Adair150
Ringgold150
Worth150
Decatur110
Montgomery102
Wayne90
Adams80
Fremont70
Unassigned70
Rochester
Clear
85° wxIcon
Hi: 87° Lo: 67°
Feels Like: 88°
Mason City
Few Clouds
85° wxIcon
Hi: 89° Lo: 67°
Feels Like: 87°
Albert Lea
Scattered Clouds
82° wxIcon
Hi: 88° Lo: 69°
Feels Like: 85°
Austin
Scattered Clouds
86° wxIcon
Hi: 88° Lo: 68°
Feels Like: 88°
Charles City
Clear
86° wxIcon
Hi: 88° Lo: 68°
Feels Like: 87°
HOT AND HUMID
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Minnesota baseball players get a sense of normalcy

Image

Sean's 10pm Weather 7/2

Image

Mask Mandate in Cerro Gordo County

Image

Raising Kids to be Tolerant

Image

Student Athlete Speaks Out About Racist Comments

Image

Volunteer of the Month

Image

June Jobs Report Shows Promise

Image

Intermittent Fasting may slow aging process

Image

Extra enforcement to keep boaters safe and sober

Image

All State Award for local VFW

Community Events