Asian shares traded mixed on Tuesday, tracking Wall Street’s tech sell-off overnight, as investors awaited more clues on the prospects of interest rates and remained cautious about China’s slowing growth and developments in Russia following an attempted coup.
The S&P/ASX 200 in Australia gained 0.56% as of 9.36 AM Bangkok time.
The Hang Seng index in Hong Kong ended a five-day losing trend with a gain of 1.24%. China’s benchmark Shanghai Composite index also saw a gain of 1.27%.
Meanwhile, Japan’s Nikkei 225 index fell by 0.71%, extending earlier losses.
The Kospi index in South Korea was also down by 0.16%.
Overnight in the US, the Nasdaq Composite dropped 1.16%, the S&P 500 lost 0.45%, and the Dow Jones Industrial Average fell marginally.
Analysts predict a decline in Asian stocks on Tuesday due to risk aversion on Wall Street and concern over the outlook for the global economy in the coming months.
According to Anderson Alves, a global macro analyst at ActivTrades, “the threat of a potential recession during a high-interest rate cycle, enforced by central banks, could significantly impact both the U.S. and Europe, thus influencing global trade, financing conditions, and demand.”
An attempted revolt in Russia over the weekend also cooled risk appetite further, as it looked to show fractures in President Vladimir Putin’s grip on power.
