The influence of China’s suppression continues, and Asian stock markets have fallen. Investing.com

Gina Lee

Investing.com-Following the downtrend set by its US counterparts, Asia-Pacific stock markets mostly fell in early trading on Wednesday. The crackdown on China earlier this week continued to have a knock-on effect, while earnings for the newest major technology companies in the United States were mixed.

As of 10:39 pm Eastern Time (2:39 am GMT), the Japanese stock market was down 1.16%.

The South Korean stock market fell slightly by 0.07%. Data released earlier in the day showed that it fell to 103.2 in July, down from 110.3 the previous month.

In Australia, as the Consumer Price Index (CPI) increased better than expected 0.8% and 3.8% in the second quarter, the index fell by 0.54%. Data released earlier in the day also showed that the adjusted average CPI increased by 0.5% and 1.6%, respectively.

The Hong Kong stock market rose 0.83%, and the Chinese stock market fell 0.50% and fell 1.61%.

Although the Hong Kong stock market rose on Wednesday, surpassing the 1% mark earlier in the session, as China continues to be affected by the crackdown, caution still exists. The crackdown on lucrative industries, including technology and education, has raised questions about how far it will expand to contain large companies.

And it continued to fall during the Asian session. Weakened, and China’s sovereign bonds also fell.

After the Nasdaq 100 index hit its biggest decline in more than two months and other major U.S. stock indexes fell, the U.S. stock market recovered its decline. Thanks to the Chinese sell-off and the steady auction of 5-year tenders, US Treasury bonds were boosted by two investors turning to high-quality Treasury bonds.

The sharp drop in the Chinese and Hong Kong stock markets continues to worry investors, heightening concerns about the surge in COVID-19 cases worldwide and its impact on economic recovery.

“The turmoil in Chinese technology stocks has finally spread to U.S. technology stocks,” Susquehanna International Group’s co-director of derivatives strategy Chris Murphy told Bloomberg.

He added that after the earnings of major technology companies have entered a “seasonal weakness in the stock market,” “I am worried that investors will generally lighten their positions.”

Although corporate earnings have helped the US stock market so far this week, recent performance has been mixed.And Apple (NASDAQ:) and Microsoft Corporation (Nasdaq:) Their stock fell in extended trading due to concerns about slowing growth, and Alphabet Inc.’s (NASDAQ:) share price rose due to strong sales from Google.

Facebook (NASDAQ:) and Amazon (NASDAQ:) will also announce earnings later this week.

Investors are also waiting for the announcement later in the day, waiting for clues about the central bank’s asset reduction and interest rate hike schedule. US data for the second quarter will be released on Thursday.