By Ambar Warrick
Investing.com– Most Asian stock markets tumbled further on Monday as traders exited risk-driven assets on fears that rising interest rates and high inflation could trigger a global economic recession.
Bourses in South Korea, Japan, and Taiwan were the worst hit, sinking between 2% and 3%, extending losses from last week.
India’s bluechip index dropped 1.6% to a near one-month low, while Hong Kong’s fell 1.1% to an 11-year low.
Regional stocks broadly tracked a steep selloff on Wall Street last week, sparked by hawkish signals from the Federal Reserve and after a slew of weak and business activity data.
The also hiked interest rates, and warned that the UK economy may already be in recession.
The surged to new 20-year highs, while also rose, indicating that market sentiment was broadly risk-off. High yield, high-risk stocks and currencies all saw steep declines on Monday.
Concerns over slowing growth in Asia also persisted. The Chinese government for financial institutions to stem a drop in the yuan, making it more expensive for traders to short the currency.
China’s bluechip index fell 0.5%, while the index lost 1.2%. Both indexes were trading at their lowest level in over five months.
Japan’s fell 2.7%, as data showed that grew slightly in September. But the outlook for the Japanese economy remained pressured by high inflation and a weakening yen.
Japan’s also grew at its slowest pace in nearly two years.
Thailand’s was the worst performer in Southeast Asia, down 0.9%.
Asian stocks have tumbled in value this year as concerns over an impending recession drove capital away from risk-driven assets. Tighter monetary conditions, triggered by a slew of interest rate hikes in the region, have also weighed on stock markets.
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