Asia-Pacific markets fell on Thursday, following declines on Wall Street as investors grew concerned about the U.S. budget bill potentially adding to the country’s debt. Japan’s Nikkei index dropped 0.84% to 36,985.87, while South Korea’s Kospi slipped 1.22% to 2,593.67. Australia’s S&P/ASX 200 fell 0.45% to 8,348.7, and Hong Kong’s Hang Seng Index dropped 1.19% to 23,544.31.
The sell-off on Wall Street came as worries about a ballooning deficit deepened, with the 10-year U.S. Treasury yield reaching 5.09%, the highest level since October 2023. The Dow Jones Industrial Average lost 1.91%, the S&P 500 shed 1.61%, and the Nasdaq Composite slid 1.41%. In other news, Bitcoin hit a new record high above $111,000 on Thursday.
James Butterfill from CoinShares attributed the rise to positive momentum, optimism around U.S. crypto regulation, and continued interest from institutional buyers. Singtel’s two new data centers in Singapore and Thailand are expected to boost the telco’s revenue once they come online later this year and early next year, according to Group CEO Yuen Kuan Moon.
Wall Street jitters impact global markets
The company experienced a 2% revenue growth at the group level, thanks to contributions from its Australian subsidiary Optus and its cybersecurity arm Trustwave. Iqbal Khan, co-president of UBS Global Wealth Management, advised investors to diversify their portfolios across different regions, sectors, and currencies to navigate the volatile global market. Chinese electric-vehicle maker Xpeng saw its shares in Hong Kong surge over 10% on Thursday following upbeat earnings and a stronger-than-expected revenue forecast for the second quarter.
The company delivered 94,008 vehicles in the first three months of this year. Japan’s Finance Minister Katsunobu Kato described U.S. tariffs as “regrettable” during the Group of Seven meeting in Canada, emphasizing that Trump’s tariffs create uncertainties. Emerging market stocks are regaining attention as the “sell U.S.” narrative gains momentum following Moody’s recent downgrade of the U.S. credit rating.
The Bank of America labeled emerging markets as “the next bull market,” while JPMorgan upgraded emerging market equities from neutral to overweight. Crypto-related stocks rallied as Bitcoin hit its record high, reflecting increased investor interest in digital assets.