As the U.S. stock market plunged, the Asian stock market also plunged, and as of 11:30 p.m. on the 29th, Korea’s KOSPI plunged 1.79% and showed the largest drop. Japan’s Nikkei is down 1.07% and Australia’s ASX index is down 1.06%, respectively.
The Chinese stock market is also plunging 0.54% of China’s Shanghai Composite Index and 1.61% of Hong Kong’s Hang Seng Index. The Shanghai Composite Index started at 3399.68, down 0.28% from the previous day.
The Shenzhen Component Index fell 0.4% from the previous day to 12,930.43, and China Next, called the Chinese version of NASDAQ, started trading at 2,817.12, up 0.82% from the previous day.
On the previous day, the Chinese stock market closed higher due to growing expectations for economic improvement. The Shanghai Composite Index closed at 3409.21, up 0.89% from the previous day.
The Shanghai Composite Index has fluctuated repeatedly, recording 3405.4 at 9:51 a.m. on the same day. Tourism and restaurant businesses in the early stages are showing strong performance.
This is attributed to the sharp drop in the U.S. stock market on the previous day due to concerns over an economic slowdown. On the previous day, the U.S. stock market plunged 2.98 percent for NASDAQ, 1.56 percent for Dow, and 2.01 percent for S&P 500.
This is attributed to growing concerns over an economic slowdown, with the consumer confidence index reflecting U.S. consumer sentiment hitting a 16-month low.
Experts say the market will remain sluggish until it is clear whether the global economy can avoid a recession.
AMP chief economist Shane Fliber told CNBC, “Even if there is no economic downturn, global growth and Asian growth will slow significantly,” adding, “The Asian market is not expected to bottom out until September or October.”