Asian Stock Market: Trades deeply in red amid inflationary fears, WTI soars
- Asian stocks are posting heavy losses on Tuesday following the footprint of its US counterpart.
- Crude oil rallies above its three-year high fuels expectation of higher pricing pressure.
- RBA keeps rates steady, persistent China’s Evergrande default risk sours market sentiment
Asian stocks fell sharply on Tuesday morning following heavy sell-off on Wall Street. Investors remained pessimistic about the soaring oil prices during the time when global economies are already struggling with supply chain disruptions and slower growth. MSCI’s broadest index of Asia-pacific shares outside Japan declined more than 1.3%. The index records fall for the third consecutive session this Tuesday.
The Nikkei 225 slumped nearly 2% to an over one-month low following a fall for the seventh straight session amid the speculations that new Japanese Prime Minister Fumio Kishida’s proposal to raise capital gains tax.
The Hang Seng Index rose 0.32% after plunging to a near one-year low in the previous session on optimism after the Hong Kong Monetary Authority is ready to explore digital currency and seeking feedback from the financial industry.
The ASX 200 declined 0.71% after the Reserve Bank of Australia maintained its status-quo on its monetary policy. RBA kept the cash rate unchanged at a record low of 0.1% during its October meeting as widely anticipated.
WTI prices trade above 77.00 near to its three-year high on Tuesday after OPEC+ confirmed it would stick to its current output policy.