HONG KONG- Asian shares and US futures tumbled on Tuesday after a tumultuous Wall Street session, with investors nervous about the situation in Ukraine and eyeing the US Federal Reserve amid worries about a move to tighter monetary policy globally.
NATO said on Monday it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets, in what Russia denounced as Western “hysteria” in response to its build-up of troops on the Ukraine border.
MSCI’s broadest index of Asia-Pacific shares outside Japan shed 1.2 percent, falling to its lowest in a month, and Japan’s Nikkei skidded 2 percent to its lowest level since August.
There were sharp declines around the region. Hong Kong lost 1.64 percent and Korea’s KOSPI fell 1.67 percent. The Australian benchmark tumbled 2.73 percent to hit an eight-month low, hurt also by a high inflation print Tuesday morning that stoked fears of approaching rate hikes Down Under.
Asian markets were being dragged lower by concerns about faster US rate hikes, mounting tensions over Ukraine, rising inflation and higher oil prices, said Carlos Casanova, senior economist at UBP.
“But on the upside, valuations are becoming more attractive and earnings growth are still robust for some sectors. So I think we will see a tug of war in the market for this week,” he said.
US futures also fell in Asian hours, Nasdaq futures shed 1.2 percent and S&P500 futures lost 0.95 percent, after US stock markets had recovered strongly late in the session to close higher, recouping steep losses made early in the day, as bargain-seeking investors snapped up shares.
The Dow Jones Industrial Average finished up 0.29 percent, the S&P 500 gained 0.28 percent and the Nasdaq Composite added 0.63 percent.
