Markets fall from Sydney to Shanghai as analyst warns that broad selloff could turn into a ‘capitulation’
Shares in Asia Pacific have plunged into bear market territory and wiped billions off the values of companies as one analyst warned that the losses could be a harbinger of a wholesale “capitulation”.
After the worst day for tech stocks on Wall Street for seven years, markets were in retreat from Sydney to Shanghai as concerns about the global economy and rising borrowing costs were compounded by local factors.
There are many symptoms but no one can diagnose the illness.
Geopolitics, rising bond U.S. bond yields, a more hawkish looking U.S. Federal Reserve (the Fed), slowing Chinese growth, a strong U.S. dollar and the already well known problems in some emerging economies have all contributed to the market unease.
…and the VIX spiked to over 26, a level last seen in February.This similarity obfuscates two (related) differences. First, less enthusiasm on the part of #investors to buy the dip. Second, accumulated evidence that the #Fed no longer has the #markets back covered as in the past pic.twitter.com/23W7EhdOfe
Bad day for Aussie stocks with #ASX200 down to lowest in a year. Now on longest losing streak since Sept. 10. Financials have entered a bear market. #ausbiz #auspoll @BloombergAU @markets pic.twitter.com/5XwTuUiPE5
Chart: South Korea’s stocks in bear-market territory – pic.twitter.com/1mkOs2whpf