Asian stocks fell on Tuesday after social media platform Snap warned that it would miss earnings forecasts for the current quarter due to a deteriorating macroeconomic environment.
Oil prices slipped on concerns over a possible recession and China’s COVID-19 curbs, while the euro held near one-month highs amid signs that the European Central Bank is turning more hawkish.
ECB President Christine Lagarde surprised market players on Monday with a blog post stating that the central bank could increase rates in July.
China’s Shanghai Composite Index plunged 2.4 percent to 3,070.93 as COVID-19 curbs dragged and fresh Chinese stimulus to support the economy underwhelmed investors.
Investment banks UBS Group and JPMorgan Chase downgraded their forecasts for China’s economic growth this year, citing disappointing April activity data and the impact of the coronavirus strategy.
Hong Kong’s Hang Seng Index closed 1.8 percent lower at 20,112.10, led by declines from Chinese ecommerce giant Alibaba and video-sharing platform Kuaishou.
Japanese shares ended lower as a survey showed activity in the country’s manufacturing sector grew at the slowest pace in three months in May amid supply bottlenecks. The Nikkei 225 Index dropped 0.9 percent to 26,748.14, while the broader Topix ended down 0.9 percent at 1,878.26.
Staffing agency Recruit Holdings led the losses with a 6.6 percent fall, while Toyota Motor shed 0.6 percent after announcing a cut in its global production plan.
Seoul stocks fell sharply amid fears that the Federal Reserve’s tightening to curb inflation could hurt economic growth. The Kospi tumbled 1.6 percent to 2,605.87.
Market bellwether Samsung Electronics gave up 2.1 percent and No. 2 chipmaker SK Hynix declined 4 percent, while state-run utility Korea Electric Power rallied 3.5 percent.
A measure of South Korea’s consumer sentiment stood at 102.6 in May, down 1.2 points from a month earlier, according to the survey from the Bank of Korea.
Australian markets fluctuated before ending slightly lower, dragged down by technology stocks. The benchmark S&P/ASX 200 Index slipped 0.3 percent to 7,128.80, while the broader All Ordinaries Index dropped 0.4 percent to settle at 7.373.20. Block Inc. shares plunged 7.3 percent and Tyro Payments shed 5.2 percent.
New Zealand shares fell notably on expectations that the country’s central bank will hike interest rates by half a percentage point for a second consecutive meeting when its meets on Wednesday.
Downbeat retail sales data and signs of a slowdown in Australia’s manufacturing sector also dented sentiment.
The benchmark NZX-50 Index closed 0.6 percent lower at 11,247.03. Pushpay Holdings soared 12.9 percent after the payments group confirmed that it was in early talks with multiple parties over a potential acquisition.
U.S. stocks ended Monday’s session on more solid footing after President Joe Biden said he was considering easing tariffs on Chinese goods.
The Dow rallied 2 percent, the tech-heavy Nasdaq Composite climbed 1.6 percent and the S&P 500 surged 1.9 percent.
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