Alibaba and other widely traded foreign stocks were not spared a wave of selling as global investors gave in to concerns about the prospect of a slowing U.S. economy and rushed to adjust positions. Concerns about the possibility of a U.S. recession were mounting late last week, but it was Friday’s poor U.S. jobs data that catalyzed what appears to be a panic attack. The S&P 500 fell over the weekend and now Asian and European markets are tumbling in early trading on Monday.
While major indexes are posting dizzying moves, with Tokyo’s Nikkei 225 down more than 12%, individual stocks are also suffering. Foreign names are among the first to react in the hours before the US market opens. Shares of Chinese online retailer Alibaba fell 1.4% in Hong Kong, and those of its peer JD.com fell 1.6%. Another Chinese technology name, Baidu, lost 3%.
Asian stocks plunged on another day of sharp declines in global financial markets
In Europe, shares in slimming drugmaker Novo Nordisk fell more than 2%. Chipmaker ASML saw its shares fall 4.1%, while shares in French luxury giant LVMH fell 2%.
The global reaction underscores growing investor concern about the impact of a potential US recession on global markets. Significant declines in technology and luxury companies reflect rapid repositioning by investors seeking to protect themselves from volatility and economic uncertainty. The situation highlights the interconnectedness of global markets and how economic signals from one region can trigger chain reactions in other markets.
Source: https://reporteasia.com/economia/2024/08/05/alibaba-y-otros-valores-extranjeros-sufren-caidas-ante-temores-de-recesion-en-estados-unidos/
