Asian Shares Slump After Wall Street Sell-off

(RTTNews) - Asian stocks slumped the most since 2022 on Friday, with Japanese markets leading regional losses.

Recession worries gripped markets as weak U.S. manufacturing and labor market data highlighted emerging cracks in the world's largest economy.

Heightened Middle East tensions and disappointing earnings updates from Amazon and Intel also dented demand for riskier assets.

U.S. yields plummeted, helping lift gold prices higher. Oil prices recovered some ground in Asian trade after a meeting of top OPEC+ ministers maintained the current oil output policy.

All eyes were on the U.S. payrolls data, due later in the day that could shed some more light on the state of the economy and the Fed's rate path.

China's Shanghai Composite index fell 0.92 percent to 2,905.34 as concerns lingered over the country's economic outlook.

Hong Kong's Hang Seng index tumbled 2.08 percent to 16,945.51 amid a global tech rout on concerns over a U.S. recession.

Japanese markets suffered their biggest losses since 2020 on concerns over rising interest rates.

The Nikkei average plunged 5.81 percent to 35,909.70, registering its second-largest point drop in history as technology stocks suffered heavy losses and a strengthening yen clouded the outlook for the country's exporters.

The broader Topix index closed 6.14 percent lower at 2,537.60 amid across the board selling.

Seoul stocks tumbled, with the Kospi average falling 3.65 percent to 2,676.19, dragged down by tech and semiconductor stocks. Samsung Electronics lost 4.2 percent and SK Hynix nosedived 10.4 percent.

Australian markets fell sharply after scoring record highs in the previous two sessions. The benchmark S&P/ASX 200 dipped 2.11 percent to 7,943.20, with miners and financials pacing the declines. The broader All Ordinaries index fell 2.08 percent to 8,170.40.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.28 percent to 12,453.04.

U.S. stocks tumbled overnight as a fresh dose of weak economic data reignited recession fears and offset upbeat earnings news from Facebook parent Meta Platforms and optimism about a near-term interest rate cut by Federal Reserve.

Early gains evaporated as data showed manufacturing activity contracted sharply in July and weekly jobless claims jumped to an 11-month high.

The tech-heavy Nasdaq Composite lost 2.3 percent, the S&P 500 declined 1.4 percent and the Dow dipped 1.2 percent.