Hang Seng slumped 1.9% to 16,187.00, the Shanghai Composite index shed 1.2% to 2,894.58, the Kospi declined 0.2%, to 2,572.41, S&P/ASX 200 dropped 0.5% to 7,453.40, while the SET in Bangkok was down 0.5%
Major Asian stock markets pulled back on Monday after Wall Street logged its worst week since Halloween.
U.S. futures were down even after Congressional leaders reached an agreement on overall spending levels for the current fiscal year that could help avoid a partial government shutdown later this month.
Oil prices dropped after Saudi Arabia on Sunday cut oil prices to Asian markets to their lowest level in 27 months.
Hong Kong’s Hang Seng slumped 1.9% to 16,187.00, led by technology shares, which lost 2.4%. The Shanghai Composite index shed 1.2% to 2,894.58.
China announced sanctions Sunday against five American defence-related firms in response to U.S. arms sales to Taiwan and U.S sanctions on Chinese firms and individuals. The announcement was made less than a week ahead of a presidential election in Taiwan that is centred around the self-ruled island’s relationship with China, which claims it as its own territory.
In South Korea, the Kospi declined 0.2%, to 2,572.41, and Australia’s S&P/ASX 200 dropped 0.5% to 7,453.40.
Taiwan’s Taiex added 0.5%, while the SET in Bangkok was down 0.5%.
Markets in Japan were shut for a holiday.
Investors are awaiting inflation reports later this week from Japan, the U.S. and China.
Friday on Wall Street, the S&P 500 added 0.2% to 4,697.24 after drifting between small gains and losses through the day. It capped the first losing week for the index in the last 10, after it started 2024 on expectations that inflation and the overall economy are cooling enough for the Fed to cut interest rates sharply through the year.
The Dow Jones Industrial Average added 0.1% to 37.466.11 and the Nasdaq composite gained 0.1% to 14,524.07.
