Shares in the Asia-Pacific region mostly traded lower on Wednesday, as economic fears continue to weigh on the market.
Reuters reported that U.S. President Joe Biden plans to call for a temporary suspension of the 18.4-cents a gallon federal tax on gasoline in a bid to bring down soaring energy costs.
South Korea led losses, with the Kospi falling 2.74% to close at 2,342.81, and the Kosdaq dropping 4.03% to 746.96. SK Hynix was down 3.15% and Naver dropped 4.38%.
Japan’s Nikkei 225 slipped 0.37% to 26,149.55 at the close, while the Topix was down 0.19% at 1,852.65.
The S&P/ASX 200 in Australia declined 0.23% to 6,508.5. MSCI’s broadest index of Asia-Pacific shares outside Japan declined 2.17%.
Major indexes in the U.S. jumped on Tuesday after weeks of declines. The Dow Jones Industrial Average gained 641.47 points or 2.15% to 30,530.25, while the S&P 500 rose 2.45% to 3,764.79. The tech-focused Nasdaq advanced 2.51% to 11,069.302.
“The rebound in U.S. equities overnight … will be taken with a pinch of salt as elevated inflation and risks to growth persist,” Lavanya Venkateswaran, an economist at Mizuho Bank, said in a note.
“If you are a global investor and you’re seeking a diversification of risk in your portfolio, what’s very interesting is that the dependency of, let’s say the Chinese equity market, on what’s happening in the U.S. is becoming less and less,” said Jim McCafferty, joint-head of APAC equity research at Nomura.