Asian Stocks Also Fall Sharply Due to 'Powell Shock'... South Korea Down 2.18%, Japan Down 2.66%

The Japan Nikkei Average (Nikkei 225) closed at 27,878.96, down 762.42 points (2.66%) from the previous trading day, as a pedestrian passes in front of the stock market ticker board.
[Image source=EPA Yonhap News]

[Asia Economy Reporter Lee Chun-hee] Following the sharp decline in the U.S. stock market last week due to hawkish remarks by Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), major Asian stock markets including South Korea also closed sharply lower on the first trading day of this week.

On the 29th, the KOSPI closed at 2,426.89, down 54.14 points (2.18%) from the previous trading day. This is the lowest closing price since May 27 (2,415.53). The rate of decline is also the largest since June 22 (-2.74%). The KOSDAQ also closed at 779.89, down 22.56 points (2.81%) from the previous session.

In addition, Japan's Nikkei Average (Nikkei 225) closed at 27,878.96, down 762.42 points (2.66%) from the previous day. Taiwan's TAIEX fell 2.31%, and Australia's S&P/ASX 200 index dropped 1.95%, showing declines around 2% in other major Asian stock markets as well.

Hong Kong's Hang Seng Index closed down 0.64% from the previous day, while China's Shanghai Composite Index showed a slight gain of 0.14%. This is analyzed to be influenced by the U.S.-China agreement on accounting oversight of Chinese companies listed on U.S. stock exchanges.

According to Bloomberg, amid the sharp decline in Asian stock markets, the global stock index calculated by Morgan Stanley Capital International (MSCI) also recorded its lowest level in the past month at 2,694.62.

The decline in Asian asset markets on this day is attributed to the hawkish remarks made by Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), at the Jackson Hole meeting on the 26th (local time). Chairman Powell expressed his determination to continue rate hikes and tightening measures, even at the unfortunate cost of suppressing inflation.

This content was produced with the assistance of AI translation services.