Japan’s Nikkei index closed on Tuesday after tumbling by an unusually large 5.1%. Stocks in Shanghai and Taiwan also tumbled following heavy losses on Wall Street over President Donald Trump’s attack on the US central bank.
Tokyo’s benchmark stock index hit a 20-month low as worries mounted over the US economy during a government funding crisis.
On Monday evening, Trump shocked investor confidence by hitting out at the Federal Reserve, tweeting: “The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders.”
Although the chairman of the Federal Reserve, Jerome Powell, was nominated by Trump, the Fed is not under the control of the White House, much to Trump’s consternation.
The US economy has also been suffering under trade disputes Trump has started with China.
Treasury Secretary Steven Mnuchin attempted to calm investors, to no avail. US stocks are likely to have their worst December since the height of the Great Depression in 1931.
Tech companies, heath care and banks took some of the heaviest losses. Many economists expect US growth to slow in 2019.
es/kms (AP, AFP)
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