TOKYO: Asian stocks fell Thursday on concerns about the sluggish U.S. economy and overvalued equity markets, with Shanghai dropping the most and extending a deep two-day correction.
The Shanghai Composite Index SHCOMP, -1.41% was down 1.6% at 4,159.42 after losing 5.6% in the past two sessions. In Japan, reopening after its golden week holiday, the Nikkei Stock Average NIK, -1.13% fell 1% to 19,338.67, while Australia’s S&P ASX 200 XJO, -0.73% and the Hang Seng Index HSI, -0.58% in Hong Kong were both down 0.6%, at 5,659.50 and 27,483.78, respectively.
Overnight, U.S. Federal Reserve Chairwoman Janet Yellen warned about high stock valuations during a panel discussion with the head of the International Monetary Fund, Christine Lagarde. Earlier Wednesday, data showed a slowdown in U.S. job creation, which could encourage Fed officials to delay raising interest rates beyond their June meeting.
“The basic premise that the U.S. economy is good and European economies are bad is changing,” said Hideyuki Ishiguro, senior strategist at Okasan Securities. But he added that solid Japanese earnings
results and the prospect of a recovery in consumption should support the Tokyo market.
