Asian stocks are set to plummet as the selloff in US technology and cryptocurrency markets spills over, rattling investors across the region. What this really means is that the global economic downturn is deepening, with ripple effects being felt from Wall Street to the financial hubs of Asia.
Crypto Slump Continues
The pain in the crypto space shows no signs of letting up, with Ether plunging as much as 26.5% in Asian trading on Monday. Bitcoin also tumbled nearly 6% as investors fled risky assets in the face of escalating US-China trade tensions and growing recession fears.
Tech Sector Struggles
The broader tech selloff that has gripped US markets is now spilling over to Asia. As AP News reports, shares in Japan and Australia dropped along with equity futures for Hong Kong, mirroring the 1.9% plunge in the tech-heavy Nasdaq 100 on Wednesday.
Recession Worries Intensify
The bigger picture here is that the global economy is teetering on the edge of recession, and investors are rushing to shed riskier assets like tech stocks and cryptocurrencies. As The Economic Times reports, concerns over AI company valuations and infrastructure spending are fueling a rise in Treasury yields, further adding to market jitters.