Asian equity markets fell on Wednesday, taking cues from a negative lead on Wall Street as major US banks warned of an impending recession and as the prospect of higher interest rates weighed on risk assets. Investors also digested data showing the Australian economy expanded less than expected in the third quarter, while China’s trade surplus fell short of estimates in November. Shares in Australia, South Korea, Japan and Hong Kong all declined.
Meanwhile, benchmark indexes in mainland China ended mixed after authorities scaled back nationwide Covid restrictions further, including letting people travel between different parts of the country even without negative virus tests and stopping local officials from locking down large areas. The 10 new measures followed 20 measures announced last month as Chinese authorities faced mounting pressure to end its strict zero-Covid policy that has weighed heavily on the economy.
