Asian stocks fell broadly on Tuesday amid concerns about the global economic outlook after the International Monetary Fund, or IMF, slashed its world economic forecast, citing a range of triggers beyond escalating trade tensions.
These potential triggers include a “no-deal” Brexit for the U.K. and a deeper than envisaged slowdown in China.
The IMF now projects a 3.5 percent growth rate worldwide for 2019 and 3.6 percent for 2020, down 0.2 and 0.1 percentage points, respectively, from its last forecasts in October.
Brexit worries also lingered as British Prime Minister Theresa May offered nothing new to break the political deadlock just 10 weeks before Britain leaves the EU.
China’s Shanghai Composite Index tumbled 30.81 points or 1.2 percent to 2,579.70, while Hong Kong’s Hang Seng Index closed at 27,005.45, down 191.09 points or 0.7 percent.
Japanese shares gave up early gains to close lower as the yen strengthened on worries over slowing global growth, stalled Brexit talks and the ongoing U.S. government shutdown.
The benchmark Nikkei 225 Index declined 96.42 points or 0.5 percent to 20,622.91, and the broader Topix closed 0.6 percent lower at 1,556.43.
Fanuc, Komatsu and Panasonic declined 2-3 percent. Zozo slumped 6.4 percent after reports that a number of shops were withdrawing from its online fashion shopping site.
Australian markets retreated after mining giant BHP reported a drop in second quarter iron ore production and said it would take a $600 million hit due to production disruptions at its copper and iron ore operations.
The benchmark S&P/ASX 200 Index dropped 31.60 points or 0.5 percent to 5,858.80, while the broader All Ordinaries Index ended down 29.20 points or 0.5 percent at 5,924.30.
BHP shares dropped 1.3 percent, and rivals Rio Tinto and Fortescue Metals Group fell 0.6 percent and 1.7 percent, respectively.
The big four banks fell 1-2 percent. Energy stocks also slid broadly despite higher oil prices. Oil Search tumbled 2.8 percent, while Woodside Petroleum, Santos and Origin Energy ended down between 0.6 percent and 0.8 percent.
