Asian Shares Extend Losses after Fitch Downgrades U.S.’s Long-Term Credit Rating to AA+

Asia shares extended their losses on Thursday, tracking Wall Street’s sell-off after ratings agency Fitch downgraded the United States’ long-term credit rating from AAA to AA+, with focus shifting from the Fed’s rate decision to the Bank of England’s and the earnings of big tech firms.

As of 9.43 A.M. Bangkok time, Hong Kong’s Hang Seng index dropped 0.18%, while the Shanghai Composite in mainland China was down 0.12%.

Japan’s Nikkei 225 dropped 1.21%, leading to losses in the region.

South Korea’s Kospi fell 0.42%.

In Australia, the S&P/ASX 200 slid 0.46%, and the country will release its trade balance for June later.

Investors will also be keeping an eye on the Caixin private survey of China’s service sector activity in July, set for release later this week.

Overnight in the U.S., the Nasdaq Composite had its lowest day since February, down 2.17%, while the Dow Jones Industrial Average dropped 0.98% and S&P 500 fell 1.38%.

Later in the day, Apple is expected to report the largest third-quarter drop in revenues since 2016 as sales of iPhones slow. Inc. is projected to report a more than 8% increase in second-quarter revenue due to a comeback in advertising and e-commerce.