HONG KONG: Asian markets tumbled on profit-taking on Thursday following the previous day’s robust gains.
Tokyo fell 0.39 per cent, Hong Kong dropped 0.29 per cent, Shanghai eased 0.24 per cent, Seoul shed 0.22 per cent and Sydney remained flat.
Regional markets have enjoyed a mostly positive run since Monday as concerns eased over the global economy that fuelled a sell-off last week.
Shares opened in negative territory as traders cashed in recent gains. However, buying sentiment was lifted by a rise in HSBC’s preliminary purchasing managers index of manufacturing activity.
US shares tacked lower on Wednesday after running up three days of big gains, helped by easing global fears as well as broadly positive corporate earnings.
The Dow sank 0.92 per cent, the S&P 500 fell 0.73 per cent and the Nasdaq lost 0.83 per cent but the dollar enjoyed a pick-up in New York after US consumer prices rose 0.1 per cent in September, beating expectations for a 0.2 per cent dip. The result eased worries about deflation and would tend to point to higher interest rates, which support the dollar.
