Wall Street sees slump with Dow Jones Industrial again leading the losses

With the exception of Hong Kong and Malaysia, the stocks in the Asia-Pacific region were down on Friday after the Dow Jones registered its biggest fall since September.

The trend comes after US Stocks fell sharply Thursday after new data showed retail sales declined more than expected in November, further multiplying the fears that the Federal Reserve’s relentless interest rate hikes are tipping the economy into a recession.

On Friday, the Nikkei 225 in Japan was down 1.87 percent to close at 27,527.12 while the Topix lost 1.20% to end the session at 1,950.21.  The Kospi in South Korea also fell 0.04 percent to 2,360.02. In Australia, the S&P/ASX 200 fell 0.78 percent to 7,148.7.

Although the Hang Seng gained 0.42 percent, the situation on Mainland China was different as Shenzhen Component fell 0.56 percent to 11,295.03 and the Shanghai Composite fell 0.02 percent to 3,167.9.

Bad day for blacklisted Chinese tech companies

Shares of Chinese technology companies listed in Mainland China fell in Asia trade after the US government announced a list of companies that will face restrictions over their efforts to help modernize China’s military.

The moves comes just two months after the Biden administration curbed China’s access to advanced semiconductors.

Chinese artificial intelligence developer Cambricon Technologies’ shares listed in Shanghai fell more than 4 percent in Asia’s afternoon session after falling 6 percent in the morning. China Electronics Technology Group also fell more than 2 percent.

Shenzhen-listed shares of Hangzhou Hikvision, the world’s largest surveillance camera maker, fell 0.7 percent.

Meanwhile, WuXi Biologics – a company that manufactures ingredients for the AstraZeneca Covid vaccine – was removed from the list. Hong Kong-listed shares of the company rose more than 5 percent in Asia’s afternoon.

All is not well in Wall Street

Earlier on Thursday, the Dow Jones Industrial Average fell 764.13 points (2.25 percent) to 33,202.22 while the S&P 500 dropped 2.49 percent to 3,895.75, bringing its losses in December to around 4.5 percent.

Similarly, the Nasdaq Composite was down 3.23 percent to 10,810.53 as the battered tech-heavy index stretched its 2022 losses to nearly 31 percent.

The disappointing retail sales report suggested inflation was taking a toll on consumers. Retail sales fell 0.6 percent in November, according to the Commerce Department. That was a bigger loss than the Dow Jones estimate of a 0.3 percent decline.


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