(MENAFN– ecpulse)
Asian equity markets declined on Wednesday, weighed by global growth worries and fears of risks from an equity market correction, following a drop on Wall Street.
The Nikkei 225 in Tokyo lost 1.2%, Hong Kong’s Hang Seng fell 1%, and South Korea’s Kospi fell 0.4%. Sydney, Singapore and Taiwan fell while Shanghai increased.
Investors were looking less upbeat about the prospects for economic growth after the International Monetary Fund trimmed its global outlook for 2014 and 2015, mainly due to a slowdown in Japan, Europe and Latin America.
Market participants will look forward for signs of when the Federal Reserve might be increasing interest rates. The Fed will release minutes of its latest meeting later today.
The IMF’s report also warned of risks of a financial market correction, highlighting “frothy” levels in stock markets.
A long period of near-zero policy interest rates in advanced economies are hiking risks of bubbly valuations.
The drop followed a significant fall in Wall Street. The S&P 500 fell 1.5% while the Dow Jones Industrial Average and the NASDAQ Composite Index both fell 1.6%.
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