Saudi Arabia’s share index sees worst session
Saudi Arabia’s benchmark stock index logged its worst session in six weeks, ending the day 1.2 percent lower, while most other major Gulf markets also closed in the red, as investors worried about mounting fiscal pressures in major economies.
Moody’s recent downgrade of the U.S. credit rating has shaken investor confidence, especially amid concerns that President Donald Trump’s proposed tax cuts could add $3 trillion–$5 trillion to the existing $36 trillion debt.
Persistent trade deadlocks and pressure from key partners to ease tariffs have only deepened the unease.
External pressures dampened regional market sentiment, with investors closely monitoring talks surrounding Trump’s proposed tax cut bill, Joseph Dahrieh, Managing Principal at Tickmill said in a note.
Meanwhile, official data showed that Saudi Arabia’s crude exports in March fell to 5.754 million barrels per day (bpd) from 6.547 million bpd in February. Oil prices rose more than 1 percent on Wednesday.
European shares slide
European stocks fell on Thursday, as concerns over US fiscal health kept Treasury yields elevated, while investors awaited business activity readings to gauge the impact of US tariffs on the euro zone economy.
The pan-European STOXX 600 index was down 0.6 percent, as of 0718 GMT, retreating further from a two-month high touched earlier this week.
Wall Street closed sharply lower on Wednesday, as the benchmark 10-year US Treasury yield climbed to three-months highs on worries that US government debt would swell by trillions of dollars if Congress passes President Donald Trump’s proposed tax-cut bill.
The House of Representatives voted on Thursday roughly along party lines to begin a debate that would lead to a vote on passage later in the morning.
Meanwhile, data showed France’s private sector shrank for a ninth consecutive month in May, weighed down by continued weakness in the services sector.
South Korean shares fall
South Korean shares fell more than 1 percent on Thursday, tracking Wall Street’s overnight losses on worries about US government debt with a focus on President Donald Trump’s tax-cut bill.
The benchmark KOSPI closed down 31.91 points, or 1.22 percent, at 2,593.67, marking its biggest daily percentage fall since April 9.
US stocks closed sharply lower on Wednesday as Treasury yields spiked on worries that US government debt would swell by trillions of dollars if Congress passes President Donald Trump’s proposed tax-cut bill.
Republicans who control the US House of Representatives have scheduled two key pre-dawn Thursday floor votes for Trump’s sweeping tax and spending bill, including a vote to pass the legislation and send it to the Senate.
China stocks flat
Stocks in mainland China were largely flat on Thursday, as gains in banks and miners countered concerns over the fiscal health of the world’s largest economy, which has dragged Hong Kong and its regional peers lower.
Investors turned risk-off after sharp declines on Wall Street and a spike in longer-dated US Treasury yields, while US President Donald Trump tried to push his sweeping spending and tax-cut bill through Congress.
Australian stocks end two-day winning run
Australian shares fell on Thursday, weighed down by losses in energy and banking stocks, as investors booked profits after a two-session winning streak.
The S&P/ASX 200 index was down 0.5 percent at 8,341.4 by 0047 GMT.
The benchmark had ended 0.5 percent higher on Wednesday.
“We are also sitting around 2 percent off record territory on the ASX so investors have likely pulled back to take profits and assess the outlook on both a macro and valuations front,” said Grady Wulff, market analyst at Bell Direct.
Energy stocks shed 1.2 percent and were among the top laggards on the benchmark, tracking global oil prices, which declined after Oman’s foreign minister said that Iran and the US would resume nuclear talks later this week.
Shares of top Australian oil and gas firm Woodside Energy were down 1 percent, while Santos dropped 1.3 percent.
Indian benchmarks set to open lower
India’s benchmark indexes are likely to open marginally lower on Thursday as U.S. fiscal worries and higher Treasury yields sapped global investor sentiment.
Gift Nifty futures were trading at 24,757 as of 8:21 a.m. IST, indicating that the Nifty 50 will open below its previous close of 24,813.45.
Most Asian markets fell in early trade, tracking overnight losses on Wall Street, as yields on 20-year U.S. government debt rose to their highest since November 2023.
Investor sentiment has been fragile since Moody’s downgraded the United States’ credit rating last Friday amid concerns about the country’s ballooning debt pile.
Long-dated U.S. Treasury yields spiked on Wednesday on jitters over the debt burden, with Congress debating a tax and spending bill that could worsen the fiscal outlook.
The bill was approved by the U.S. House of Representatives Rules Committee, setting the stage for a vote on the House floor in the coming hours.
Sri Lanka stocks end little changed
Sri Lankan shares closed little changed on Wednesday, as a decline in consumer discretionary stocks countered gains in communication services.
The CSE All Share index settled up 0.12 percent at 16,355.91.
ACME Printing and Packaging PLC and Eastern Merchants PLC were the top percentage gainers on the CSE All Share index, rising 25 percent and 23 percent, respectively.
Trading volume on the index rose to 171 million shares from 58.4 million in the previous session.
The equity market’s turnover rose to 2.43 billion rupees ($8.1 million) from 1.51 billion rupees in the previous session, according to exchange data.
Foreign investors were net buyers, purchasing stocks worth 559.3 million rupees, while domestic investors were net sellers, offloading shares worth 2.38 billion rupees, the data showed.