Hong Kong’s Hong Cheng fell 2.8%, leading to losses in the region. Japan’s Nikkei also fell more than 2%. Korea’s Gosby fell 1.6%. China’s Shanghai Composite Index fell 1%.
Thursday morning stock futures in Asia continued their downward trend. Dow futures are down 0.4%. The S&P 500 futures and Nasdaq futures are down 0.5% and 0.8%, respectively.
Rising inflation rates from the UK and Canada “remind markets that the fight against inflation between central banks worldwide will be a challenging process,” said Jun Rong Yeeb, IG Group’s market strategist.
“The increase in Govt-19 cases in China lowers previous hopes for a rapid easing of overall virus controls, which could contribute to market risk aversion,” he said.
When Tencent recorded zero revenue growth in the first quarter, those concerns strengthened on Wednesday, with a worse-than-expected outcome.
“Despite recent assurances from Chinese officials, the relief of Chinese technology has so far proven to be short-lived because market participants are waiting to pursue a more firm policy to restore long-term confidence,” Yeeb said.
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