World Market

 Stocks Tumble as Fed Stresses Need for Stimulus: Markets Wrap

Stocks slumped to an eight-week low amid warnings from Federal Reserve officials on the need for more stimulus to lift the world’s largest economy from a coronavirus-induced recession. The dollar rallied.

The S&P 500 closed near the threshold that many investors consider to be a market correction, while the Nasdaq 100 tumbled more than 3%, led by giants Apple Inc. and Amazon.com Inc.

Asian stocks were on course for declines after warnings from Federal Reserve officials on the need for more stimulus pushed U.S. equities to an eight-week low. The dollar extended this week’s gains. Futures in Japan and Hong Kong retreated, while S&P 500 futures opened little changed. The benchmark is now down almost 10% from its recent high and fell another 2.4% Wednesday. Treasuries were little changed. The caution comes as virus cases tick higher in the U.S. and other parts of the world. Traders are losing faith in the strength of the economic recovery, with the chances for Congressional stimulus withering ahead of a contentious election battle. Global equities are on course for the first monthly slide since March. Oil declined.

Australia leads gains, jumping more than 2% as Asia-Pacific markets mostly rise

SINGAPORE — Stocks in Asia-Pacific were mixed on Wednesday as investors reacted to recent comments from Federal Reserve Chairman Jerome Powell.

Shares in Australia led gains among the region’s major markets, with the S&P/ASX 200 in Australia jumping 2.42% to close at 5,923.90.

Mainland Chinese stocks were also higher on the day, with the Shanghai composite up 0.17% to about 3,279.71 while the Shenzhen component added 0.665% to roughly 13,110.07. Hong Kong’s Hang Seng index was gained 0.11% to end its trading day at 23,742.51.

Elsewhere, South Korea’s Kospi closed above the flatline at 2,333.24, following Tuesday’s decline of more than 2%.

Stocks in Japan were edged lower on their first trading day of the week following holidays on Monday and Tuesday. The Nikkei 225 slipped fractionally to 23,346.49 while the Topix index dipped 0.13% to 1,644.25.

Overall, the MSCI Asia ex-Japan index advanced 0.18%.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 94.143 following its rise earlier this week from levels below 93.5.

The Japanese yen traded at 105 per dollar following a weakening from levels around 104.4 against the greenback yesterday. The Australian dollar changed hands at $0.7118, having weakened from levels above $0.725 this week.

Oil prices were mixed in the afternoon of Asian trading hours, with international benchmark Brent crude futures up slightly to $41.74 per barrel. U.S. crude futures shed 0.1% to $39.76 per barrel.