A sell-off in global equities resumed in early Asia-Pacific trading on Thursday after a sharp fall for stocks on Wall Street overnight.
In Sydney, the S&P/ASX 200 was down 2 per cent, at its lowest since late April, with all market segments lower and including a decline of 1.8 per cent for resources stocks and a 1 per cent fall for financials. New Zealand’s S&P/NZX 50 was off 2.5 per cent and at its lowest since early June.
The pain looked set to continue for other parts of the region with futures tipping the Topix in Japan to slump 3.3 per cent and Hong Kong’s Hang Seng to drop 1.4 per cent when trading starts.
The move came after US stocks suffered their worst fall in more than eight months as technology stocks led a broad sell-off sparked by the recent jump in interest rates. That saw the Nasdaq Composite shed more than 4 per cent, its biggest one-day decline since June 2016, while the S&P 500 fell 3.3 per cent in its worst day since February.
The hit to US stocks also drew a sharp response from US President Donald Trump, who said the Federal Reserve had “gone crazy”, in a reference to the central bank’s recent raising of interest rates.
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