- Japan’s Nikkei 225 down more than 3 percent after Wall Street tumble overnight*
- Stocks in Australia, Japan and South Korea saw declines in the morning.
- Overnight on Wall Street, the major stock indexes saw a sell-off, with the Dow Jones Industrial Average plunging by more than 600 points.
Stocks in Asia fell in the morning on the back of the Dow Jones Industrial Average falling by more than 600 points overnight.
Japan’s Nikkei 225 fell 3.4 percent in early trade while the Topix index saw losses of 3 percent. Shares of Apple supplier Japan Display plunged 8.57 percent in the morning after the company reported its sixth straight quarterly operating loss and lowered its outlook, according to Reuters.
The losses spilled over to South Korea, where the Kospi shed 2.12 percent. Shares of industry heavyweights saw a sharp pullback, as Samsung Electronicslost 2.88 percent while SK Hynixdropped 5.5 percent.
The ASX 200 fell 1.76 percent in morning trade, with almost all sectors in negative territory. Energy stocks fell by 1.72 percent while the heavily weighted financial subindex saw losses of 2.32 percent.
Shares of Australia’s so-called Big Four banks saw sharp declines: Australia and New Zealand Banking Group shed 1.97 %, Commonwealth Bank of Australia lost 1.34 percent and National Australia Bank was lower by 1.41 percent. Westpac saw the largest percentage decline among the four, falling by more than 5.6 percent.
Wall Street sell-off
In overnight market action on Wall Street, the Dow Jones Industrial Averagedropped 602 points to close at 25,387.18 while the Nasdaq Composite declined 2.8 percent to 7,200.87 by the closing bell. The S&P 500 also saw losses of 2 percent to close at 2,726.22.
In late-afternoon trading, the major indexes hit their lows of the day after Bloomberg News reported the White House was circulating a draft report on auto tariffs.
Axios reported that President Donald Trump thinks threatening more tariffs on overseas-made cars is his best negotiating tactic on trade. The report said Trump has told aides he was able to get a better trade deal with Canada because he threatened Prime Minister Justin Trudeau with levies on cars made in Canada.
Trump has considered slapping a 25 percent charge on cars made outside the U.S. since earlier in the year.
The Axios report comes ahead of a highly-anticipated meeting between Trump and Chinese President Xi Jinping at the upcoming G-20 summit.
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.542 after its rally from around the 97 handle yesterday.
The dollar’s recent strength has raised concerns among some investors over its impact on earnings growth.
Meanwhile, the Japanese yen, which is widely seen as a safe haven currency, was at 113.59 against the greenback after strengthening from levels above 114.1 in the previous session. The Australian dollar traded at $0.7165 after sliding from levels above $0.723 yesterday.
In the oil markets, the U.S. crude futures continued to see sharp declines after posting its 11th straight loss on Monday — its longest streak on record. The U.S. crude futures contract declined 1.57 percent in the morning of Asian trade at $58.99 per barrel.