Share Market Updates: Asia-Pacific markets declined, following Wall Street’s lead

Share Market Updates: Asia-Pacific markets declined on Wednesday after U.S. banks experienced a decline, mirroring Wall Street’s actions.

JPMorgan Chase, Wells Fargo, and Bank of America all saw share prices fall by 2% and 3%, respectively. The action was taken after Fitch issued a warning that it might need to reduce the credit ratings of numerous banks, including JPMorgan Chase.

All three major U.S. indexes declined over the previous night, with the S&P 500 losing 1.16% and finishing the session below its 50-day moving average. The Dow Jones Industrial Average dropped 1.02% and ended a three-day winning streak, while the Nasdaq Composite dropped 1.14%.

Despite business sentiment improving in July, according to the Reuters Tankan survey, Japan’s Nikkei 225 and the Topix fell in Asia by 1.03% and 0.9%, respectively.

Ten American banks had their ratings downgraded by Moody’s last week, and other significant institutions were placed on watch for similar action.

The Hang Seng index in Hong Kong dropped 1.05%. While the CSI 300 index was down by 0.35%, mainland Chinese markets were also down. With a 0.1% year-over-year decline, China’s house price index entered contraction territory for the first time since April.

The S&P/ASX 200 fell 1.37% in Australia, putting it on pace to post losses for a third straight day.

The Kosdaq suffered a larger loss of 1.71% while the Kospi in South Korea returned from a holiday down 1.28%.

For the second meeting in a row, New Zealand’s central bank kept its benchmark policy rate at 5.5%, as predicted by economists surveyed by Reuters.

In a statement, the Reserve Bank of New Zealand claimed that the current interest rate environment is reducing spending and, consequently, inflationary pressure. To ensure that inflation returns to its target range of 1 to 3% while promoting the highest possible level of sustainable employment, it was added that the official cash rate “needs to stay at restrictive levels for the foreseeable future.”

On Tuesday, Southeast Asian tech giant Sea Limited’s stock fell by nearly 28.7% after the company revealed it would be ramping up investments that could reduce profits and missed revenue projections for the second quarter.

According to the chief U.S. market strategist, Returns will be much more muted for the remainder of the year. He even said that because the stock market has run up so much, it is now a good time to sell some stocks and lock in profits because they are now overvalued and overextended.