Just hours after Wall Street tumbled more than 800 points, spooked by growth and trade worries, it is now reported that Hong Kong also fell 1.7 per cent in afternoon trade, Shanghai ended 0.6 per cent lower while Tokyo was down 0.5 per cent.
— CBS News (@CBSNews) December 4, 2018
Analysts are blaming continuing uncertainty over US President Trump’s trade pact with China for investors’ nervousness as well as fears over the strength of the US economy.
Stephen Innes, head of Asia-Pacific trade at OANDA, said investors “are probably left feeling duped, tricked and maybe even snookered by some ill-advised backslapping comments post-G20”.
“While trade war is certainly the number one driver of global risk sentiment, the current meltdown is morphing into a Hydra with familiar points of irritation — trade, (Federal Reserve), Brexit, Italy, global growth — coming to a head,” he added.