Asia Markets Join Global Stock Plunge

Asian markets tumbled on Tuesday as investors dumped stocks following heavy falls in the US in anticipation of higher interest rates.

Japan’s Nikkei 225 index ended the morning session down 5.3% and Hong Kong’s Hang Seng dropped 4.7%.

It comes after the Dow Jones Industrial Average suffered its worst drop in more than six years on Monday.

A strengthening global economy and healthy corporate earnings had spurred world markets to record highs.

But the sell-off began last week after a solid US jobs report fuelled expectations that the Federal Reserve will raise interest rates faster than expected.

“Economic news from the US has been stronger than anticipated,” said David Kuo, chief executive of financial services advisory Motley Fool.

“So, perversely, the market correction has been caused by positive economic news.”

Elsewhere in Asia, South Korea’s Kospi index was down 2.6% and Australia’s benchmark S&P/ASX 200 sank 3%.

US stock futures were pointing to more sharp falls when markets open on Tuesday.

Read this article from the original source: Asia Markets Join Global Stock Plunge.