Risks of recession are causing Asian markets to weaken

Singapore In the wake of the recent price losses on Wall Street, Asian stock markets are also coming under selling pressure. Japan’s Nikkei index fell 1.1 percent to 27,577 points on Friday and the Shanghai stock exchange fell 1.7 percent to 3,145 points. Investors were hit by the latest recession warnings from the International Monetary Fund (IMF) and the World Bank.

Investment strategist Suresh Tantia from Bank Credit Suisse predicted that further rate hikes by the major central banks would have to be expected. Similar to the USA, investors in Asia parted with technology stocks in particular.

According to experts, higher interest rates will devalue the future profits of these high-growth companies. Tokyo Elektron shares fell four percent. In China, brokerage houses came under pressure after the Beijing government asked the industry to reduce its fees. East Money’s shares fell by a good 11 percent.