Following a sell-off in Wall Street on Thursday, Asian stocks began the day with weaker performance. The decline was primarily driven by a drop in the Nasdaq, which saw a decrease after experiencing significant gains earlier in the week. Investor apprehension was also evident due to the anticipation of a speech by Federal Reserve Chair Jerome Powell on Friday. The S&P 500 experienced a decline of 1.35%, reaching 4,376 points, while the Nasdaq exhibited a more pronounced drop of 1.87%, settling at 13,463 points.

The prevailing sentiment in the Asian market is one of caution. The recent sharp sell-off in Wall Street, coupled with the considerable strengthening of the dollar—experiencing its most significant monthly increase in a span of ten weeks—has left investors wary. There is a reluctance to adopt an overly optimistic approach in light of the impending remarks by Powell.

Notably, equity markets in Japan and Australia, along with Hong Kong stock futures, have all experienced declines.- Agencies