Hang Seng shredded over 280 points on Thursday, revesing the previous day's loses. Asian equities ended the day in red, mirroring Wall Street’s sharp losses from the previous day, as concerns over the US economy weighed heavily on investor sentiment. Pressure on US Treasuries continued, amid fears that Donald Trump’s push for new tax cuts could further inflate the already massive federal deficit.
Hang Seng plunged to 23,544.31 losing 283.47 points or 1.19% while Nikkei dropped 313.11 points or 0.84% to reach at 36,985.87. Shanghai also closed at 3,380.19, down 7.39 points or 0.22%.
Sout Korea's Kospi dipped to 2,593.67, down 31.91 points or 1.22%.
A weak auction of 20-year US government bonds raised fresh concerns about the country’s fiscal health, which came just days after Moody’s downgraded its top-tier credit outlook. The development halted a recent rally which was driven by reports of easing China-US trade tensions and signs of progress in America's trade talks with other nations.
Asian equities also dipped due to the declining US dollar as some have significant holdings in dollars.
A weak dollar also hurts Asian exporters, such as Japanese automakers and electronics companies, by reducing the value of their overseas earnings when they are converted into yen.
Meanwhile, bitcoin surged to a new record high of $110,707, boosted by growing bipartisan support among US lawmakers for a bill aimed at regulating stablecoins, digital currencies pegged to the US dollar.
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Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
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