Again, the stock market in Asia shows a general decline of 2.1%. The Nikkei 225 index from Japan was the only one to experience subpar growth, rising by 0.03%. All other indices are falling, but the Australian S&P/ASX 200 loses the least (0.16%). The Korean KOSPI is down 1.17%, while China's Shanghai Composite and Shenzhen Composite are each losing 0.81% and 0.52%. Hong Kong's Hang Seng Index saw the most significant decline, which fell 2.04%.
Asian indices typically adopt the dynamics of American stock exchanges. Following the Federal Reserve leaders' comments about the necessity of further interest rate increases, the major American indicators are declining. Due to the aggressive approach of the central regulator, bidders worry about a potential economic downturn. And because central banks in Europe, Asia, and the United States continue to raise interest rates, this holds true not just for the American economy but for the entire global economy.
The Chinese central bank, meanwhile, kept the base rate on loans for one year at 3.65% and the rate on loans for five years at 4.3%. The central regulator made this choice in light of the depreciation of the national currency, the slowdown in economic activity nationwide brought on by an increase in COVID-19 cases, and the restrictive measures put in place.
Additionally, it has been reported that the leader of the Hong Kong administration contracted COVID-19 after attending the summit in Thailand. He had a negative test throughout the forum, and when he got home, he had a positive one.
The quotes of businesses involved in the service sector have decreased more than those of other components of the Hong Kong Hang Seng Index as a result of the situation with the spread of the coronavirus in China and the notification of the first fatal outcome over the past six months. As a result, the stock prices of Galaxy Entertainment Group Ltd., Sands China Ltd., and Haidilao International Holding Ltd. decreased.
The biggest South Korean businesses also show a decline in the value of securities. Samsung Electronics Co. shares fell 1.5%, and Kia Corp. shares fell 1.7%.
The share prices of Australia's biggest corporations also declined. BHP securities lost 2.25% of their value, and Rio Tinto securities lost 2.3%.
Sapporo Holdings Ltd.'s share price increased by 2.9%, Teijin Ltd.'s share price increased by 2.8%, and Tokio Marine Holdings Inc.'s share price increased by 2.3%, all of which contributed to the rise in the Japanese Nikkei 225.
