Asia-Pacific markets traded lower on Thursday, following sharp declines on Wall Street overnight as investor concerns mounted over the implications of a new United States budget bill on the nation’s rising debt levels.
As of 12:15 pm AEST (2:15 am GMT), Australia’s S&P/ASX 200 slipped 0.5%, South Korea’s Kospi 200 shed 1.2%, and Japan’s Nikkei 225 was down 0.8%.
The weak sentiment followed an overnight sell-off in U.S. equities, where a spike in Treasury yields sparked fears that new federal spending plans could exacerbate the country’s ballooning deficit.
The Dow Jones Industrial Average fell 1.9%, the S&P 500 dropped 1.6%, and the Nasdaq Composite declined 1.4%.
In commodities, Brent crude dipped 0.7% to US$64.91 per barrel. Gold, often seen as a safe-haven asset, rose 0.8% to US$3,315.25 per ounce.
In mainland China, equities fared better. The Shanghai Composite rose 0.2% to 3,387.6, while the CSI 300 added 0.5% to close at 3,916.4.
Hong Kong’s Hang Seng Index gained 0.6% to 23,827.8, while India’s BSE Sensex also rose, climbing 0.5% to 81,596.6.
European markets closed mixed overnight. The UK’s FTSE 100 edged up 0.1% to 8,786.5, Germany’s DAX gained 0.4% to 24,122.4, while France’s CAC 40 slipped 0.4% to 7,910.5.
