Global markets are bracing for a turbulent week as investors anxiously anticipate Israel’s response to Iran’s recent air assault. The Asia-Pacific region has been particularly volatile, with markets extending their declines amidst the geopolitical uncertainty.
China’s Economic Report and Global Growth Concerns
All eyes will be on China this Tuesday as the world’s second-largest economy releases its first-quarter gross domestic product (GDP) figures. Economists predict a respectable growth of 4.6% year-over-year. Additionally, China’s industrial production and retail sales numbers, key indicators of economic health, are also expected on the same day.
- Hang Seng Index: Futures predict a subdued open for Hong Kong’s Hang Seng index, with a potential drop from its previous close of 16,600.
- Nikkei 225: Japan’s Nikkei 225 plunged 1.5% at the opening bell, while the broader Topix index fell 1.04%. The yen’s depreciation against the US dollar, reaching its weakest level since 1990, contributed to the market’s decline.
- Kospi and Kosdaq: South Korea’s Kospi lost 1.31%, with the small-cap Kosdaq experiencing a smaller decline of 0.86%.
- S&P/ASX 200: In Australia, the S&P/ASX 200 retreated 0.86%.
US Market Retreat Amidst Rising Yields and Geopolitical Tensions
Overnight in the United States, stocks retreated as rising bond yields and concerns over the Middle East conflict overshadowed positive earnings news from Goldman Sachs and robust retail sales data. The Dow Jones Industrial Average ended the day 0.65% lower, marking its sixth consecutive losing session.
The S&P 500 slipped 1.2%, while the Nasdaq Composite tumbled 1.79% as technology stocks, including Salesforce, came under pressure. Higher interest rates further weighed on the market’s positive momentum, with the yield on the 10-year Treasury surpassing the 4.6% mark, its highest level since mid-November.
Contributors: Hakyung Kim and Alex Harring, LA News Center
