Asian stocks declined sharply after on fueled concerns about risks to economic growth.
Shares in Mainland China, Hong Kong, Thailand, Japan and South Korea dropped sharply.
“It highlights how fleeting swings in sentiment are now and also that investors are running at the first sign of trouble,” Jeffrey Haley, a senior market analyst at Oanda Asia Pacific, wrote in a note.
“The market continues to turn itself inside out and back to front as it tries to decide if it has priced all of the impending rate hikes, soft landing or recession, inflation or stagflation, China, Ukraine, US summer driving season, supply chains, the list goes on.”
“That is a big risk that the Fed doesn’t get the big economy signals and keeps marching along with a very aggressive tightening program,” Margaret Patel, senior portfolio manager at Allspring Global Investments, said on Bloomberg Television. “But if they look at the real world out there they will see it’s time to take a big pause.”
Crude oil dipped with the WTI trading around $110 a barrel while the Brent is trading around $113 a barrel.