Asian shares fell sharply on Tuesday after Wall Street suffered its biggest decline since 2011 as investors’ faith in markets began to crumble. Japan’s Nikkei share average dived on Tuesday morning to a level not seen since late October after Wall Street plunged overnight on concerns about rising bond yields and potentially rising inflation. The Nikkei fell to as low as 21,698.52 and was down 4 per cent in the early morning. The broader Topix fell 4.3 percent to 1,745.79. Australian shares dropped 2.7 per cent in early
trade to their lowest level since October while futures suggest Japan’s Nikkei is on course to fall more than 4 percent. US stocks plunged in highly volatile trading on Monday, with the Dow industrials falling nearly 1,600 points during the session, its biggest intraday decline in history, as investors grappled with rising bond yields and potentially firming inflation. Norihiro Fujito, a senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities, said: ”Since last autumn, investors had been betting on the Goldilocks economy – solid economic expansion, improving corporate earnings and stable inflation. But the tide seems to have changed.” READ MORE
