STREAMING NOW: Watch Now

Asia stocks sink after Wall Street's Christmas Eve plunge

Wall Street's Christmas rout spilled into Asia.Japan's ...

Posted: Dec 26, 2018 9:56 AM
Updated: Dec 26, 2018 9:56 AM

Wall Street's Christmas rout spilled into Asia.

Japan's Nikkei plummeted 5% on Tuesday, dragging the index into a bear market. In China, the Shanghai Composite dropped as much as 2.5% before recovering some of its losses to close down 0.9%.

Banking, finance and investments

Business, economy and trade

Donald Trump

Economic indicators

Economy and economic indicators

Financial markets and investing

Political Figures - US

Securities trading

Stock indexes

Stock markets

Asia

Continents and regions

China

East Asia

North America

The Americas

United States

Wall Street

Christmas

Holidays and observances

The declines in Asia followed another brutal day for US stock markets, which fell more than 2% in a shortened trading session. The Dow, which sank 2.9%, and the S&P 500, which lost 2.7%, suffered their biggest Christmas Eve declines ever.

"The market is getting pummeled from every direction," said Stephen Innes, head of Asia-Pacific trading for online broker Oanda.

Investors are getting increasingly concerned about a slowdown in global economic growth, according to market experts. Those worries have been intensified by US President Donald Trump's attacks on Federal Reserve Chairman Jerome Powell for continuing to raise interest rates.

US stocks went into a tailspin Monday after Trump tweeted that "the only problem our economy has is the Fed," stoking fears he may fire Powell.

The turmoil on Wall Street is infecting other big markets because of concerns that problems in the US economy — the world's biggest — could hit major trading partners such as Japan and weigh on companies' profits, said Hirokazu Kabeya, chief global strategist at Daiwa Securities in Tokyo.

Investors around the world already have plenty to worry about, including China's economic slowdown, the unresolved US-China trade war and Brexit's unpredictable outcome.

Despite strong growth this year, the US economy has become a wild card in recent weeks as investors have fretted about the combination of slowing growth and rising interest rates. US stocks are on pace for their worst December since the Great Depression.

US Treasury Secretary Steven Mnuchin added to the uncertainty on Sunday by releasing an unusual statement saying he had called the CEOs of the biggest American banks. He said the executives assured him their banks are healthy and have "ample liquidity" to lend to consumers and businesses. "Markets continue to function properly," Mnuchin said.

The use of words typically reserved for times of crisis — even though there were no outward signs of one — spooked investors.

"This is the type of announcement that raises the question of whether Treasury sees problems that the rest of the market is missing," Cowen & Co. analyst Jaret Seiberg wrote in a note to clients.

The partial US government shutdown has added to the sense of disarray.

Multiple major stock markets in the Asia-Pacific region were closed Tuesday for Christmas, including Hong Kong, Australia and South Korea. Most European markets are also shut, while US markets are due to reopen on Wednesday.

Kabeya said he's skeptical investors' downbeat mood will improve before the end of the year.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 33068

Reported Deaths: 2068
CountyConfirmedDeaths
Marion9524558
Lake3494175
Cass15897
Allen141966
St. Joseph122134
Hendricks114268
Hamilton113292
Elkhart110128
Johnson1092106
Madison58459
Porter50522
Bartholomew49034
Clark47941
LaPorte42022
Tippecanoe3823
Howard37824
Delaware37636
Jackson3721
Shelby36822
Hancock32727
Floyd31739
Boone30535
Morgan27724
Vanderburgh2592
Montgomery23417
White2308
Decatur22431
Clinton2221
Noble20421
Grant19721
Dubois1903
Harrison18921
Henry16910
Greene16824
Monroe16512
Warrick16528
Dearborn16521
Vigo1538
Lawrence15223
Miami1401
Putnam1357
Jennings1294
Orange12422
Scott1203
Ripley1106
Franklin1098
Kosciusko1011
Carroll933
Daviess8416
Steuben812
Marshall801
Newton7610
Wayne756
Fayette747
Wabash742
LaGrange682
Jasper661
Washington511
Jay490
Fulton471
Clay461
Rush452
Randolph453
Jefferson431
Pulaski410
Whitley383
Owen351
Sullivan341
DeKalb331
Brown331
Starke323
Perry280
Wells270
Benton260
Huntington262
Knox250
Tipton241
Crawford230
Blackford222
Parke190
Spencer191
Switzerland190
Fountain182
Posey160
Gibson142
Adams131
Ohio130
Warren121
Vermillion100
Martin90
Union80
Pike60
Unassigned0161
West Lafayette
Overcast
67° wxIcon
Hi: 77° Lo: 56°
Feels Like: 67°
Kokomo
Broken Clouds
65° wxIcon
Hi: 74° Lo: 52°
Feels Like: 65°
Rensselaer
Overcast
63° wxIcon
Hi: 75° Lo: 52°
Feels Like: 63°
Fowler
Overcast
61° wxIcon
Hi: 76° Lo: 52°
Feels Like: 61°
Williamsport
Overcast
65° wxIcon
Hi: 77° Lo: 55°
Feels Like: 65°
Crawfordsville
Broken Clouds
62° wxIcon
Hi: 75° Lo: 55°
Feels Like: 62°
Frankfort
Overcast
65° wxIcon
Hi: 75° Lo: 54°
Feels Like: 65°
Delphi
Broken Clouds
63° wxIcon
Hi: 75° Lo: 54°
Feels Like: 63°
Monticello
Broken Clouds
64° wxIcon
Hi: 74° Lo: 53°
Feels Like: 64°
Logansport
Clear
63° wxIcon
Hi: 74° Lo: 53°
Feels Like: 63°
Cooler, less humid weather ahead by the weekend.
WLFI Radar
WLFI Temps
WLFI Planner

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