The main Asian indices fell similarly to the main US indices. The Shanghai Composite and Shenzhen Composite were down by 2.16% and 2.36%, while Hong Kong's Hang Seng Index dropped by 3.4%. Tokyo's Nikkei 225 Index lost 2.37%, South Korea's KOSPI declined by 1.05% and Australia's S&P/ASX 200 slipped by 0.8%.
Asia-Pacific indicators are always heavily influenced by the US stock market. Today the situation was the same. US indicators showed a decline amid disappointing inflation statistics. Consumer prices rose by 7.9% last month compared to January's rise of 7.5%. This is a record high for the last 40 years.
Another reason for investors' pessimism is the increase in US scrutiny of Chinese companies' securities that are traded on US exchanges. The Securities and Exchange Commission has named a number of companies whose shares will be excluded from trading on US exchanges if they do not bring their accounts into line with US law.
The decline in the Japanese indicator was driven by a drop in the value of the securities of the largest companies. Thus, securities of M3 Inc. fell by 6.1%, SoftBank Group lost 6% and Keyence Corp. dropped by 5.3%. Toyota Motor shares slumped by 4.1%, while Sony Corp. and Fast Retailing plunged by 2.8% and 2.3%, respectively.
On the Hong Kong exchange, JD.com Inc. posted the biggest declines, losing 13%, China Resources Beer Co., Ltd. shed 9.1% and Sunny Optical Technology Group Co., Ltd. dropped by 8%. Shares of Alibaba Group Holding, Ltd. plunged by 6.6% and Tencent Holdings, Ltd. was down by 4.9%.
The South Korean indicator was dragged down by a 1% decline in Samsung Electronics Co. and a 0.3% decline in Hyundai Motor.
To combat rising inflation and soaring energy costs around the world, Australia's central bank should prepare to raise interest rates this year, according to a report.
BHP shares fell 0.1%, while Rio Tinto gained 1%.
