Investing.com– Asian stocks fell sharply on Friday, tracking an overnight decline on Wall Street on concerns about slowing economic growth, with falls in Japanese markets deepening after the Bank of Japan expressed a hawkish stance this week.
Weakness in the US Purchasing Managers’ Index and labor market data raised concerns that the world’s largest economy is slowing and that the Federal Reserve’s September interest rate cut may be too late for the economy to catch up. a soft landing.
Weak earnings from big companies like Intel Corporation (NASDAQ: ) and Amazon.com Inc (NASDAQ: ) also dampened sentiment, largely offsetting positive press from Apple Inc (NASDAQ: ). US stock index futures fell sharply in Asian trade, as attention turned to upcoming data for further economic guidance.
The Nikkei hit 6-month lows amid a BOJ aversion.
Japanese markets were the worst performers among their Asian peers, with the index down nearly 5% to its lowest level since early February. The broader index lost 4.2%.
Japanese stocks were already pricing in steep losses on Thursday after the BOJ struck an unexpectedly hawkish tone at its meeting in late July.
The central bank said it plans to raise rates further this year, ending the stimulus policies that supported Japanese markets last year.
The surge – based on a demand for safe-haven assets and a decimated BOJ – also weighed on Japanese securities, particularly those exposed to exports.
Toyota Motor Corp (NYSE:) (TYO:) – one of the Nikkei’s top stocks – fell 3.1% after June quarter earnings narrowly missed estimates, as the automaker reported slowing demand.
Asian markets were hit by growth concerns
Broader Asian markets fell as risk appetite was shaken by growing concerns about a global economic slowdown. The mixed performance of the United States in the technology sector has led to widespread declines in the sector.
The South Korean index fell 3.3% as chipmakers suffered heavy losses following weak Intel earnings. Previously, also the chip designer arm Holdings (NASDAQ: ) posted disappointing earnings, while artificial intelligence appeared to provide only a limited boost.
The Hong Kong index fell 2.1% amid losses in major Chinese internet stocks.
The Australian index fell 2.4% as mining stocks suffered heavy losses in commodity prices, while concerns about slowing growth in China also weighed.
However, Chinese markets posted relatively smaller losses than their regional counterparts as they traded at five-month lows.
The indices and fell by 0.7% and 0.5% respectively, reaching their lowest level since mid-February. Sentiment in China remained subdued following little stimulus cues from Beijing and a series of weak PMI readings for the month of July.
Futures for the Indian index indicated a weak opening, with the index set for a heavy level of profit-taking after hitting an all-time high above 25,000 points on Thursday.