Asian markets dropped Wednesday, led by the Nikkei’s fall of more than 2%, following overnight declines in U.S. financial markets as investors re-evaluated their “Trump trade” optimism.
The Nikkei 225 in Japan swooned 414.5 points, or 2.1%, to 19,041.38, notching its biggest daily drop since an initial slump in the wake of Donald Trump’s electoral win on Nov. 8.
In currencies, the yen gained a further 0.2% in Asian trading after the dollar earlier hit a four-month low against the yen
The Hang Seng Index in Hong Kong thundered lower 272.71 points, or 1.1%, to 24,320.41
Hong Kong-listed Chinese oil majors PetroChina and CNOOC were down 2.2% and 2.1%, respectively.
Stocks globally and the U.S. dollar had broadly rallied in the wake of President Donald Trump’s election in November, buoyed by his talk of a tax overhaul and infrastructure investment.
However, roadblocks have risen ahead of Thursday’s scheduled vote to dismantle the Affordable Care Act.
Korea’s financial sub-index dropped 1.7% and Australia’s "Big Four" banks—Commonwealth Bank of Australia, Westpac Banking, National Australia Bank and Australia and New Zealand Banking, which make up one-third of the weighting of that country’s benchmark stock index—shed 1.5% to 2.6%.
CHINA
In Shanghai, the CSI 300 slid 16.3 points, or 0.5%, to 3,450.05
Stocks in China generally logged smaller declines than in other Asian markets amid an influx of liquidity. Over the past three days, the People’s Bank of China has injected into markets a combined 110 billion yuan ($16 billion U.S.), resulting in a sharp drop in interbank borrowing rates.
In other markets
The Kospi Index in Korea dipped 10.08 points, or 0.5%, to 2,168.30
In Taiwan, the Taiex subtracted 49.83 points, or 0.5%, to 9,922.66
In Singapore, the Straits Times Index doffed 16.3 points, or 0.5%, to 3,118.19
In New Zealand, the NZX 50 sank 24.71 points, or 0.4%, to 7,060.83
In Australia, the S&P/ASX 200 slouched 90.1 points, or 1.6%, to 5,684.51
