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Asia-Pacific markets saw a sell-off on Wednesday, mirroring moves on Wall Street after a decline in U.S. banks.
Shares of JPMorgan Chase and Wells Fargo dropped 2%, and Bank of America dropped 3%. The action came after Fitch warned it may have to downgrade the credit rating of dozens of banks, including JPMorgan Chase.
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Last week, Moody’s lowered its rating on 10 U.S. banks while putting other big institutions on a watchlist for potential downgrades.
In Asia, Japan’s Nikkei 225 slid 1.46% to end at 31,766, the first time it has gone below the 32,000 mark in over a month, while the Topix closed down 1.29% at 2,260.84. This is despite business sentiment improving in July, according to the Reuters Tankan survey.
South Korea’s Kospi came back from a public holiday 1.76% down and closed at 2,525.64, while the Kosdaq saw a larger loss of 2.59% and finished at 878.29, its lowest level since July 11.
In Australia, the S&P/ASX 200 slipped 1.5%, closing at 7,195 and notching its third day of losses in four days.
Hong Kong’s Hang Seng index fell 1.31% in its final hour, while mainland Chinese markets were also lower, with the CSI 300 index 0.73% down and ending at 3,818.33. China saw its house price index fall into contraction territory for the first time since April, dropping 0.1% year on year.
Overnight in the U.S., all three major indexes lost ground, with the S&P 500 falling 1.16% and ending the session below its 50-day moving average. The Nasdaq Composite fell 1.14%, and the Dow Jones Industrial Average slid 1.02% and snapped a three-day positive streak.
