STREAMING NOW: Watch Now

Stock market rebound stalls after wild day on Wall Street

A rally in global stock markets lost steam in Asia on Wednesday.Japan's Nikkei was up just 0.2% in afternoon t...

Posted: Feb 7, 2018 2:14 PM
Updated: Feb 7, 2018 2:15 PM

A rally in global stock markets lost steam in Asia on Wednesday.

Japan's Nikkei was up just 0.2% in afternoon trading, while Hong Kong's Hang Seng slipped into the red, losing 0.7%.

Both indexes had started the day strongly. The Nikkei at one point surged as much as 3.4%, while the Hang Seng posted gains as high as 2.9%.

The Asian markets had initially taken their cues from Wall Street. After two sessions of heavy declines, the Dow shook off a bad start to close up 2.3% on Tuesday.

But Wednesday could be another volatile day in the U.S. Dow futures were down more than 220 points, or 0.9% at 1:40 a.m. ET.

Related: Dow roars back for 567-point gain after scary start

Some market watchers have voiced optimism that the heavy losses at the start of this week were just a blip in a bull run for stocks that's set to continue. But others are cautioning against trying to "buy the dip" for the time being.

"We would resist the temptation of catching a rebound," said Hao Hong, head of research at Chinese stock broker BOCOM International.

He added that a combination of high valuations in stock markets and rising interest rates around the world was the "worst recipe."

"The market may have (already) seen its high for the first half of 2018," Hong said.

Losses this week have taken the shine off of a recent rally in Asian stock markets. The Hang Seng hit an all-time record in January, while the Nikkei has recently flirted with levels not seen since the early 1990s.

Tokyo stocks plunged more than 7% over the course of Monday and Tuesday, erasing all of their gains for the year so far.

Related: Here's what the Dow drop means for you

The mass selling this week was ignited by stronger-than-expected growth in wages in the U.S. That prompted fears that the Federal Reserve may have to raise interest rates quicker than initially thought to stave off inflation. That in turn pushed bond yields higher, draining money out of global stocks.

Some analysts suggest that despite this week's misery, 2018 could still be a good year for Asian stocks -- regardless of what happens in the U.S. market.

Shares in the region are still significantly cheaper than their counterparts in the U.S., according to Kim Iskyan, an analyst at research firm Stansberry Churchouse. He cited a key valuation metric used by investors to compare companies' stock prices with their expected earnings.

"Asia is a much better place to be than the U.S. market right now," Iskyan said.

West Lafayette
35° wxIcon
Hi: 48° Lo: 32°
Feels Like: 35°
Kokomo
Clear
35° wxIcon
Hi: 47° Lo: 31°
Feels Like: 29°
Rensselaer
Clear
34° wxIcon
Hi: 47° Lo: 31°
Feels Like: 27°
Fowler
Clear
34° wxIcon
Hi: 46° Lo: 31°
Feels Like: 27°
Williamsport
35° wxIcon
Hi: 48° Lo: 30°
Feels Like: 35°
Crawfordsville
Clear
33° wxIcon
Hi: 48° Lo: 31°
Feels Like: 33°
Frankfort
Clear
37° wxIcon
Hi: 48° Lo: 31°
Feels Like: 37°
Delphi
Clear
35° wxIcon
Hi: 47° Lo: 31°
Feels Like: 29°
Monticello
Clear
35° wxIcon
Hi: 49° Lo: 31°
Feels Like: 29°
Logansport
Clear
34° wxIcon
Hi: 46° Lo: 29°
Feels Like: 26°
Clouds Build Sunday Ahead Of Snow
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 324537

Reported Deaths: 5594
CountyCasesDeaths
Marion44186858
Lake28094462
Allen18660301
Elkhart17663230
St. Joseph17256234
Hamilton13612170
Vanderburgh10028121
Tippecanoe896729
Porter855386
Johnson6718169
Hendricks6412158
Vigo625889
Monroe550450
Clark531078
Madison5239122
Delaware5075103
LaPorte481196
Kosciusko475941
Howard364177
Bartholomew335365
Warrick335372
Floyd329478
Wayne325678
Marshall311846
Cass303931
Grant287150
Hancock272957
Noble264946
Henry256437
Boone255054
Dubois245631
Dearborn228231
Jackson226334
Morgan221243
Gibson194926
Knox193021
Shelby192656
Clinton185421
DeKalb183932
Lawrence183849
Wabash172821
Adams172422
Miami170815
Daviess163145
Fayette153734
Steuben153414
Jasper151713
Montgomery149327
Harrison147624
LaGrange146131
Ripley145815
Whitley142314
Huntington133510
Decatur132543
Putnam131128
White131022
Wells130130
Clay130023
Randolph128121
Posey125816
Jefferson124116
Scott114520
Greene106053
Sullivan102716
Jay101913
Starke95022
Jennings90414
Spencer8908
Fulton87519
Perry85121
Fountain8228
Washington8127
Franklin73427
Carroll71913
Orange70028
Vermillion6607
Owen6468
Tipton60327
Parke6026
Newton57812
Rush5708
Blackford56612
Pike52719
Pulaski41815
Martin3705
Benton3643
Brown3574
Crawford3081
Union2782
Switzerland2655
Warren2562
Ohio2387
Unassigned0266

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events