Asian stock exchanges experienced a real black Friday after the sharp drops during the last trading session on Wall Street. The Japanese blue-chip index Nikkei 225 wiped out 2.32% of its value to 21,382.62 points, with most sectors finishing on red territory. The car makers, financial companies, manufacturing and technology companies have ended trading with serious downward movements. Toyota’s shares sank by 1.14%. The fall in the shares of Fanuc Manufacturing and Fast Retailing was 3.98% and 3.69%, respectively.
The analysts expect the equity adjustment phase to continue in February and possibly in March. In order to stop the correction on the market, it must stop increasing bond yields.
On the stock exchange in South Korea, the main index Kospi reported a decline of 1.82% to 2,363.77 points, with most sectors ending on red. The shares of Samsung Electronics fell by 2.83%.
In Australia, S&P/ASX 200 declined by 0.89% to 5,838 points.
In Hong Kong, the index Hang Seng also suffered from pessimism of the investors, wiping out 3.10% of its value to 29,507.42 points. The financial sector representatives HSBC and China Construction Bank reported a decline in their stock price by 0.87% and 4.33%, respectively. The shares of technology giant Tencent were traded at a lower price of 2.43%. In the mainland China, Shanghai Composite plunged by 4.05% to 3,129.85 points.
Chinese central bank announced it has secured nearly 2 trillion CNY (316.28 billion USD) to raise its liquidity and respond to increased demand for money before Lunar New Year.
Meanwhile, the consumer price index data in China were published, which reported a 1.5% yoy increase in January in line with expectations.
The sharp reaction to Asian markets on Friday was a response to the negative sentiment in the US where yields on 10-year government bonds reached 2.88%, which is the highest level in the last four years. In Europe, the Central Bank of England gave a clear signal that it would raise interest rates more and earlier than previously expected.