Stocks across Asia fell Thursday on concerns about the sluggish U.S. economy and overvalued equity markets, with Shanghai dropping the most and extending a deep two-day correction.
In Tokyo, the Nikkei 225 index returned from holiday to dump 239.64 points, or 1.2%, to 19.291.99
In Hong Kong, the Hang Seng Index fell another 350.94 points, or 1.3%, to 27,289.97, its sixth straight day of losses.
Overnight, U.S. Federal Reserve Chair Janet Yellen warned about high stock valuations during a panel discussion with the head of the International Monetary Fund, Christine Lagarde. Earlier Wednesday, data showed a slowdown in U.S. job creation, which could encourage Fed officials to delay raising interest rates beyond their June meeting.
Shares in mainland China and Hong Kong have rallied this year, but the charge has been halted in recent days. The Hang Seng Index suffered its sixth consecutive day of losses.
Australia, too, has seen its rally interrupted. There, the number of people in employment fell in April, breaking a pattern of strong jobs growth and helping to justify the central bank’s decision Tuesday to cut interest rates to a record low of 2%.
Asian currencies were mostly lower Thursday as well, with the Korean won off as much as 0.9%.
CHINA
The Shanghai CSI 300 plummeted 83.24 points, or 1.8%, to 4,470.09
China’s central bank set its guidance for the yuan against the U.S. dollar at its strongest level since February 2014
In other markets
In Korea, the Kospi index fell 13.58 points, or 0.7%, to 2,091
In Taiwan, the Taiex staggered 114.09 points, or 1.2%, to 9,704.11
In Singapore, the Straits Times index subtracted 27.01 points, or 0.8%, to 3,459.79
In New Zealand, the NZX 50 moved downward 35.92 points, or 0.6%, to 5,729.35
In Australia, the S&P/ASX 200 lost 46.47 points, or 0.8%, to 5,645.69
