Many countries dream to cease to depend upon the United States, but it is simply impossible under the current conditions. For example, North Korea took the greatest step in resolving the issue, but still backed off. America is the only superpower which means complete economic domination. Indeed, over the past few years, the GDP of New York has been greater than that of Russia. The city is overtaking the whole country which possesses the largest mineral reserves. That is why everything that happens in the US economy affects the entire world.
The dramatic decline in the American stock market causes a domino effect which resulted in the decrease of the rest of the stock markets. The collapse was observed in the markets of China, Japan, South Korea, New Zealand, as well as Russia.
Shanghai CSI 300 Index lost more than 4%, Hong Kong's Hang Seng Index fell by more than 3%, Japan’s Topix Index declined by about 3.5%, while Nikkei and Korean Kospi Indices sank by 4% and 3.5%, respectively. The MSCI AC Asia Index fell by 3.86%. Such technological giants of China as Tencent and Alibaba also failed to avoid losses. The financial sector also crashed: for example, shares of Japanese SoftBank decreased by 6%. The panic in the markets affected even Rusal shares traded in Hong Kong: the drop equalled six percent. However, the collapse of the Russian stock market was not so significant. MOEX Index lost only 2.63%. NZX 50 Index dropped by 3.6%, which was a record decline in 10 years.
