Asian stocks slipped down following a sudden decline on Wall Street and a Facebook announcement of the greatest loss in the last four years. Still, many investors wait for the first Federal Reserve gathering under Jerome Powell, a new chairman, while expecting the first rate increase in this year.
Japan’s stock market Nikkei 225 fell 0.7 percent this morning to 21.341,67. Australia S&P/ASX 200 lost 0.5 percent to 5.927,60, while Kospi from South Korea removed 0.3 percent to 2.468,35. Hang Seng from Hong Kong slipped 0.5 percent to 31.340,22, and the Shanghai Composite finished with a loss of 0.4 percent.
The technology debacle on Wall Street this week was started by Facebook’s biggest loss in the last four years. The social media network was highly criticized and many users deleted their accounts. A data mining company, Cambridge Analityca improperly obtained data of more than 50 million users from Facebook without their permission and knowledge.
Legislators in Europe and the U.S. blamed Facebook, while investors believe the companies like Facebook and Alphabet should face stronger regulations.
The S&P index fell down 1.4 percent to 2.712,92. The Dow Jones approximately lost 1.3 percent to 24.610,91. The Nasdaq composite moved down 1.8 percent to 7.344,24, and the Russell index of small firm shares rejected one percent to 1.570,56.
The first meeting of the U.S Federal Reserves under Jerome Powell will finish at the end of this week, probably with an announcement that Fed will extend modest interest rate rises. The U.S. job market is relatively healthy, while the steady economy gives the confidence to Fed, and it can think about further economic improvement. But, financial markets have been jumpy for several weeks.
Benchmark US crude moved up 23 cents to sixty-two dollars for a barrel in electronic selling on the New York market exchange. Still, it lost approximately twenty-eight percent on Monday this week. Brent Crude, which is usually used to define a price of international oils, moved up twenty-one cent to sixty-two dollars for a barrel in London.
The dollar received some of its previous values in comparison with Japan’s yen. It moved up to 106, 23 from 105,92 yen on Monday. The euro grew to $1.234 from $1.226, and it has a stable rise in the last session. However, the British Pound lost against the dollar today because the UK inflation is significantly stronger than previously expected. Still, it was one of the best performing main currencies in the last year but now has tough days.