An employee of the bank walks by the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room in Seoul, South Korea, Tuesday, Oct. 23, 2018. Asian stocks slid on Tuesday as worries about softening Chinese growth rattled investors, following a rally that was not picked up by Wall Street overnight. (AP Photo/Lee Jin-man)

Asian shares tumble as Chinese growth concerns sink in

October 23, 2018 - 2:38 am

SINGAPORE (AP) — Asian stocks slid on Tuesday as worries about softening Chinese growth rattled investors, following a rally that was not picked up by Wall Street overnight.

KEEPING SCORE: Japan's Nikkei 225 index gave up 2.7 percent to 22,010.78 and the Kospi in South Korea tumbled 3.1 percent to 2,095.44. The Shanghai Composite index, which closed more than 4 percent higher in the previous session, fell 2.6 percent to 2,584.43. Hong Kong's Hang Seng index dropped 2.8 percent to 25,428.00. Australia's S&P-ASX 200 dipped 1.1 percent to 5,843.10. Shares fell in Taiwan and throughout Southeast Asia.

WALL STREET: Broad losses for banks, health care and energy companies pulled most U.S. indexes lower after early gains on Monday. The S&P 500 index suffered its fourth straight loss, dropping 0.4 percent to 2,755.88. The Dow Jones Industrial Average lost 0.5 percent to 25,317.41, while the Nasdaq composite finished 0.3 percent higher at 7,468.63. The Russell 2000 index of smaller-company stocks shed 0.2 percent to 1,539.00, its lowest close since April.

U.S. EARNINGS: Traders are readying for a flurry of earnings reports that would show how American businesses are coping with rising interest rates, inflation and the impact of trade disputes. Close to 17 percent of companies on the S&P 500 have reported earnings for the third quarter, and over half of them did better than expected. This week, big names like Caterpillar, Amazon, Microsoft, Twitter and Google's parent company, Alphabet, will post their latest results.

CHINESE ECONOMY: Chinese benchmarks led a rebound by Asian markets on Monday, but investors have since started to price in weaker-than-expected performance in the third quarter. China's economy grew at a 6.5 percent annual pace, its slowest since 2009, official data showed. The Trump administration has raised tariffs on most Chinese goods sold to the U.S., ranging from soybeans to electric cars and whiskey.

ANALYST'S TAKE: "Asian markets opened lower following weak U.S. session overnight, as rising geopolitical uncertainties outweigh earnings optimism," Margaret Yang, market analyst at CMC Markets in Singapore, said in an interview.

ENERGY: Benchmark U.S. crude lost 27 cents to $69.09 per barrel in electronic trading on the New York Mercantile Exchange. The contract added 8 cents to settle at $69.36 a barrel in New York. Brent crude, used to price international oils, fell 40 cents to $79.43 per barrel. In the previous session, it gained 5 cents to $79.83 a barrel.

CURRENCIES: The dollar weakened to 112.47 yen from 112.82 yen on Monday. The euro fell to $1.1450 from $1.1465.


AP Business Writer Alex Veiga contributed to this report.

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