Asian stock markets fell on Tuesday, weighed down by a slow economic recovery in China that lowered growth expectations, and by a warning by US Treasury Secretary Janet Yellen that it could cause ripple effects for the global economy.
Shares in mainland China and Hong Kong fell 0.3% and 2%, respectively, on Tuesday. Stocks did not react much to the announcement of several measures taken by the government to support household consumption, including encouraging financial institutions to offer reasonable loan rates.
Real estate developer stocks were among the biggest losers, due to renewed concerns in the sector after China Evergrande Group reported huge combined losses over two years. Adding to the negative market sentiment, there was a warning of a funding shortfall by a key unit of Dalian Wanda Group.
Benchmarks also fell in South Korea and Australia, while Japanese stocks remained in the green by a narrow margin, partially supported by gains made by electric car supply chain companies, after Tesla shares rose. And the Chinese company BYD announced that its net profits had tripled during the first half of this year.
