Asian stock markets are mostly lower on Tuesday, following negative cues from Wall Street, with Hong Kong experiencing a significant drop of 8.6%. Traders are reassessing their expectations for interest rates after positive US jobs data, while escalating tensions in the Middle East further dampen market sentiment.
The Australian stock market is trading lower, with the benchmark S&P/ASX 200 falling to 8,174.30, down 31.10 points or 0.38%. Gains in mining and energy stocks are offsetting losses in technology and financial sectors. Notably, BHP Group and Rio Tinto are among the major miners gaining over 1% each.
In Japan, the Nikkei 225 Index has also dropped, closing at 38,861.09, down 471.65 points or 1.20%. Major companies like SoftBank Group and Toyota are experiencing declines of nearly 3% and 1% respectively, while the banking sector is under pressure with Mitsubishi UFJ Financial and Mizuho Financial losing more than 2% each.
On Wall Street, stocks fell sharply on Monday, with the Dow losing 398.51 points, or 0.94%, and the S&P 500 down 55.13 points, or 0.96%. This decline is attributed to reduced prospects for aggressive rate cuts by the Federal Reserve following a stronger-than-expected US employment report.
Crude oil prices surged, with West Texas Intermediate crude oil futures rising by 3.71% to $77.14 a barrel, the highest close in nearly eight weeks, amid concerns of supply disruptions in the Persian Gulf.
In the European markets, mixed results were observed, with the UK's FTSE 100 gaining 0.28% and France's CAC 40 up 0.46%, while Germany's DAX Index fell by 0.9%.