Asia stocks falter; Shanghai, Hong Kong, Tokyo all down more than 2%

Overnight on Wall Street, the Dow Jones Industrial Average dropped by 831.83 points to 25,598.74, the Nasdaq Composite fell 4 percent to 7,422.05. The S&P 500 dropped 3.3 percent to 2,785.68.

Both the Dow and S&P 500 posted their biggest one-day drops since early February, while the Nasdaq notched its largest single day sell-off since June 24, 2016.

U.S. futures continued to trend lower on Thursday morning during Asian hours, with the Dow e-mini futures down around 0.4 percent.

Some analysts said that the decline on Wall Street did not appear to have any catalyst, including the ongoing trade friction between the U.S. and China. That has “been ongoing since the start of the year,” Joseph Capurso, senior currency strategist at the Commonwealth Bank of Australia, wrote in a note.

Ray Attrill, head of foreign exchange strategy at National Australia Bank said in a note that this month’s sell-off in stocks could have been due to “a simple rush to book some profits.”

“The smaller-cap Russell 2000, representing companies that should not be particularly sensitive to either US bond yields or trade concerns, started falling well ahead of the US household name indices, and month-to-date is now off almost 10%,” Attrill said.

Meanwhile, U.S. President Donald Trump took aim at the Federal Reserve on Wednesday for continuing to raise interest rates despite some recent market turbulence.

“I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy,” the president said after walking off Air Force One in Erie, Pennsylvania for a rally.

Commenting on the sell-off on Wall Street, Trump said: “It’s a correction we’ve been waiting for for a long time, but I really disagree with what the Fed is doing.”

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