Summary
- All APAC markets, except Taiwan, are in red.
- New Zealand markets, with a 2.5% loss, are the worst performers.
- Investors fear rate hike by central banks, that triggered the sell-off
The bears seem to have gripped the Asia Pacific (APAC) markets for the second day on the trot, driven by the fears of rate hikes by the central banks.
All the indices in the region, save the Taiwanese markets, were trading in red. The Taiwan Weighted Index was trading 45 basis point (bps) higher after the rout in the last trading session. During the last trading session, the index had crashed by 3.8%.
The Dow Jones New Zealand crashed by 2.46% -- and was the worst-performing index in the region. In neighbouring Australia, the ASX200 was down 53 bps, with bank stocks dragging the index down.
Japanese markets were also one of the worst hit in the region, with Nikkei225 crashing by 1.59%. The share of Softbank Group Corp (TYO:9984) crashed by 7.19% after it didn’t extend the buyback programme.
In Hong Kong, the Hang Seng Index was down 79, while in Mainland China, the Shanghai Composite index was down 74 bps on the fears of rising inflation.
South Korean KOPSI was also down 29 bps.
In India, where the COVID-19 pandemic has overwhelmed the healthcare system, the 30-share benchmark BSE Sensex was down 96 bps.
Investors fear that the growing inflation in the US and China might force the central banks to hike the interest rates – making the much needed credit for economic recovery costlier.
