Asian stocks fall on Wall Street rout

HONG KONG, May 10, 2022 (AFP) - Asian equities mostly sank Tuesday and oil prices tumbled following a rout on Wall Street as anxieties were fanned over rising US interest rates, surging inflation and the impact of China's prolonged Covid lockdowns.
Stock markets have been on a tempestuous ride this year, with Wall Street suffering another hit on Monday as the tech-rich Nasdaq slumped more than four percent, while the S&P 500 ended below 4,000 points for the first time since March 2021.
Steep declines in China's April exports -- due to Beijing's staunch adherence to a zero-Covid policy that has placed millions under lockdown -- and volatility in crude partly due to Russia's war in Ukraine have also hastened selling.
"This rather precipitous drop in equity markets has been building for several months," said Clifford Bennett, chief economist at ACY Securities.
"The fundamentals of war, inflation, rate hikes and supply-chain disruption are all individually significant headwinds. When combined, equity markets have no way through."
US stock markets took a dive late last week after the Federal Reserve raised interest rates by a half-percentage point and flagged more aggressive hikes ahead to tackle decades-high inflation.
Stoking global inflationary pressures are lockdowns in dozens of locations across China -- from the manufacturing hubs of Shenzhen and Shanghai to the breadbasket province of Jilin -- wreaking havoc on supply chains over recent months.
By Tuesday afternoon, the equities plunge in Asia had eased, and European stocks in Frankfurt, Paris and London rebounded as dip buyers sent markets rallying after the wreckage from Monday's rout.
"For now, investors need to be prepared for continued volatility," Americas chief investment officer at UBS Global Wealth Management Solita Marcelli wrote in a note, according to Bloomberg.
Tokyo on Tuesday closed down 0.6 percent and Hong Kong slumped 1.84 percent as traders fretted over US monetary tightening. Drops seen in Seoul, Wellington, Singapore and Jakarta also eased on the close of day.