Asian stocks decline after the drop on Wall Street

• Asian stocks reacted to the drop on Wall Street.
• Expectations of lower Federal Reserve rates seeped into the market.
• Technological stocks partially compensated for overall losses.

Asian stocks fell into the red, following the overall decline on Wall Street, which recorded significant losses last week. The main reason for this was the expectation of lower interest rates from the Federal Reserve of the USA.

The Japanese index Nikkei 225 decreased by 1.1%, reaching 42,342.28. The Australian S&P/ASX 200 fell by 0.3%, to 8,949.40. In South Korea, the Kospi index lost 0.8%, dropping to 3,184.70, despite the improvement in consumer sentiment.

On Wall Street, the S&P 500 index dropped by 0.4% on Monday, although it remained close to its historical maximum. The Dow Jones Industrial Average closed down 0.8% after setting a record on Friday. The Nasdaq fell by 0.2%.

Sellers proved active in the market, particularly in the healthcare sector, with stocks like Pfizer and Eli Lilly reporting significant losses, decreasing by 2.9% and 2.3% respectively. In contrast, technology stocks, including Alphabet and Nvidia, helped mitigate overall losses.

In the bond market, yields rose after a significant drop on Friday. The yield on 10-year Treasury bonds increased to 4.28% from 4.25%, while 2-year yields rose to 3.73% from 3.70%.

Traders believe that the likelihood of a Federal Reserve rate cut at the upcoming meeting in November stands at 84%.

In other news, it was reported that President Donald Trump fired Lisa Cook, a member of the Federal Reserve Board of Directors, over allegations of fraud with mortgages.

In the energy market, prices for oil fell: American crude oil decreased by 32 cents to $64.48 per barrel, while Brent crude fell by 28 cents to $68.52 per barrel.

On the currency market, the US dollar fell to 147.31 yen, while the euro rose to $1.1644.

Tags: Economy