A Turmoil in the market What started in the United States continued across Asia and Europe on Wednesday as worries about the global economy and big technology companies spread among investors.
Benchmark indices in Japan and Taiwan fell more than 4 percent. South Korea’s Kospi index fell 3 percent and shares in Shanghai and Shenzhen also fell.
Early trading in Europe followed a similar pattern, with the Stoxx 600, which tracks shares across the continent, down 1 percent.
The decline was largely influenced by a sell-off in tech companies in the United States on Tuesday. Shares of the semiconductor giant Nvidia fell 9.5 percent and dragged the technology-heavy Nasdaq down more than 3 percent.
The reaction of global markets shows that investors are still worried after the week A downturn in the market In early August, when fears of a recession in the US economy turned into global defeat.
Since then a series of economic data points have eased concerns about a possible recession in the United States and stocks have risen sharply in recent weeks.
That hike was torn down on Tuesday.
Oil prices also fell sharply, reflecting broader uneasiness about the global economy. Brent crude, the international benchmark, fell nearly 4 percent on Tuesday to just $73 a barrel, its lowest point of the year.
The sell-off mainly affected technology and semiconductor stocks, mirroring the decline seen in major US tech companies such as Nvidia.
Japanese chip equipment maker Tokyo Electron fell more than 8 percent on Wednesday, while technology investor SoftBank was down nearly 8 percent. Taiwan Semiconductor Manufacturing Co. and ASML, a Dutch maker of chip-making equipment, were down more than 5 percent.
In a report this week, Bank of America analysts said it expects the global economy to grow 3.1 percent this year, a slightly slower pace than previously forecast. The bank said it expects the United States to avoid a recession but has a less positive outlook Chinadowngrading its growth forecast and calling government policies insufficient to stimulate demand.
Investors in the United States and elsewhere are awaiting the US Labor Department’s August employment report, which is scheduled for release on Friday.
Anticipation of that report has reignited concerns about a possible slowdown in the US economy. It can also give clues about how aggressive it is Federal Reserve It is expected to cut interest rates later this month.
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