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Asian markets experience a decline due to US rate concerns, but are partially offset by positive China GDP data.

Asian Stocks Fall Amid Geopolitical Tensions and U.S. Interest Rates Concerns

Asian Stocks Face Sharp Decline

Asian stocks took a hit on Tuesday, mirroring Wall Street’s downturn due to ongoing geopolitical tensions in the Middle East and concerns about rising U.S. interest rates.

While Chinese stocks experienced smaller losses, the country’s GDP data revealed better-than-expected growth in the first quarter.

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The overall sentiment remained cautious, fueled by fears of inflation and prolonged high interest rates, following robust U.S. retail sales figures.

China’s Economy Shows Resilience

China’s GDP expanded by 5.3%, surpassing expectations and signaling steady economic progress. Despite this positive news, Chinese stocks faced a slight decline.

On the other hand, Hong Kong’s market index dropped by 1.5%, reflecting the broader risk-off sentiment prevailing in the region.

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While the Chinese economy is on track to meet annual GDP targets, some indicators suggest a potential slowdown in momentum.

Regional Market Performance

Japanese stocks fell by 1.9%, South Korea’s market tumbled by 2.4%, and Australia’s index shed 1.7%. These declines were driven by concerns over escalating tensions in the Middle East.

Indian stocks were also vulnerable to profit-taking after reaching record highs, with expectations of further downside.

The fear of sustained high U.S. interest rates remained a major source of concern for investors across Asian markets.

Powell’s Speech to Provide Clarity

All eyes are now on Federal Reserve Chair Jerome Powell’s upcoming speech, expected to offer insights on future interest rate decisions.

Following recent inflation data and strong retail sales figures, expectations for a June rate cut have diminished, leading to continued pressure on stock markets.

This shift in market sentiment underscores the importance of Powell’s speech in providing clarity on future monetary policy.

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