Asian stocks extend losses as risk-off path continues

Asian stocks extend losses as risk-off path continues

by Ambar Warrick – Most of the Asian stock markets fell further on Monday as traders exited risk-driven assets on fears that higher interest rates and rising inflation could trigger a global economic recession.

Stocks in South Korea, Japan and Taiwan were the hardest hit, falling between 2% and 3%, extending losses last week.

The Indian company’s index fell 1.6% to its lowest level in one month, while the Hong Kong index fell 1.1% to its lowest level in 11 years.

Regional stocks broadly tracked a sharp sell-off on Wall Street last week, led by hawkish signals from the Federal Reserve and after a streak of weak data and business activity.

Interest rates were also raised, and he warned that the British economy could already be in a recession.

The price climbed to a 20-year high, while also rallying, indicating that market sentiment was broadly risk-free. Stocks and high-yield, high-risk currencies saw sharp declines on Monday.

Concerns about slowing growth in Asia also persisted. The Chinese government for financial institutions to stop the yuan’s decline, making selling the currency more expensive for traders.

The Chinese company’s index fell 0.5%, while the index lost 1.2%. Both indices traded at their lowest levels in more than five months.

Japan’s index fell 2.7%, as data showed slight growth in September. However, the outlook for the Japanese economy remained under pressure from rising inflation and a weak yen.

Japan also grew at the slowest pace in nearly two years.

Thailand was the worst performer in Southeast Asia, down 0.9%.

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Asian stocks have fallen in value this year as fears of an impending recession have shifted capital away from risk-driven assets. Tight monetary conditions, triggered by a series of interest rate increases in the region, also weighed on stock markets.

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