Asian stocks continued to decline after Wall Street’s drop, with concerns over high valuations. Prominent figures warn of potential corrections, and market anxieties grow with comparisons to the dot-com bubble. The yen, gold, and currencies see fluctuations, while Bitcoin and crude oil show marginal stability.
Asian stocks took a hit in early Wednesday trading, extending losses seen on Wall Street as concerns over valuation stretched investor confidence thin.
The MSCI Asia-Pacific index outside Japan fell 0.8%, spearheaded by South Korea’s 4.1% drop. U.S. futures also declined, echoing a 1.2% retreat in the S&P 500. “It’s a sea of red across broad markets,” commented Chris Weston of Pepperstone Group. Investors await Nvidia’s earnings as a potential catalyst.
Market nerves tested further as CEOs from Morgan Stanley and Goldman Sachs questioned stock valuations’ sustainability. JPMorgan’s Jamie Dimon previously cautioned about a correction within two years. The generative AI boom drew dot-com bubble parallels, raising stakes. Meanwhile, the yen fluctuated on policy meeting insights, and the dollar index saw a five-month high.
