Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Asian Stocks Down, Follows Rout in U.S. Shares as Valuations Concerns Continue

Stock MarketsJan 27, 2021 10:41PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – Asia Pacific stocks were down on Thursday morning, extending their decline from the previous week’s record highs as concerns about valuations added to disappointing earnings from companies like Tesla (NASDAQ:TSLA), Starbucks (NASDAQ: NASDAQ:SBUX) and Boeing (NYSA: NYSE:BA).

Japan’s Nikkei 225 was down 1.21% by 10:17 PM ET (3:17 AM GMT) and South Korea’s KOSPI was down 1.41%. In Australia, the S&P/ASX 200 fell 2.10%.

Hong Kong’s Hang Seng Index (HK:2833) fell 2.23%.

China’s Shanghai Composite was up 1.51% while the Shenzhen Component slumped 2.36%.

The turmoil that brewed after GameStop Corp (NYSE:GME). and AMC Entertainment (NYSE:AMC) Holdings Inc. shares declined sharply after the close of the previous session continued in Asia on Thursday. In response, moderators briefly made the WallStreetBets Reddit forum, which has fueled the frenzy of retail trading, private.

U.S. shares tumbled, with S&P 500 slumping the most since October.

Meanwhile, the U.S. Federal Reserve kept its policy decision unchanged, and indicated continuous massive support for the U.S. economy, after wrapping up its first policy meeting of 2021 on Wednesday. However, Fed Chairman Jerome Powell warned that the economy still faces a long road towards full recovery from the impact of COVID-19, and that the recovery is still short of inflation and job goals. He added that “the whole focus on exit is premature.”

“The focus is firmly on the fiscal side of the equation now,” BlackRock (NYSE:BLK) chief investment officer of global fixed income Rick Rieder said in a note.

Stimulus checks and extended unemployment insurance have been important to the U.S. recovery and are “far more targeted and effective in combating a crisis ... than ‘blunt’ monetary policy tools,” the note added.

Treasuries steadied, with 10-year yields trading just over 1%. Some investors remained positive, however.

“Markets were vulnerable to a setback given some of the positioning and sentiment data that we monitor but we still believe we’re going into a strong economic and profit recovery … that’s going to drive markets higher from this setback,” Goldman Sachs Group Inc (NYSE:GS) chief global equity strategist Peter Oppenheimer told Bloomberg.

The U.S. releases a slew of data, including fourth-quarter GDP, initial jobless claims and new home sales, later in the day. Data on personal income, spending and pending home sales will be released on Friday.

On the COVID-19 front, the U.K. announced new regulations to curb the spread of the virus while Germany cut its 2021 economic growth forecast. The European Union has so far failed to resolve a vaccine supply dispute with AstraZeneca (NASDAQ:AZN) Plc, raising the risk of additional delays to its already sluggish inoculation campaign.

Asian Stocks Down, Follows Rout in U.S. Shares as Valuations Concerns Continue
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email