{"id":39970,"date":"2025-05-22T11:36:42","date_gmt":"2025-05-22T11:36:42","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/22\/asian-markets-close-sensex-plunges-645-pts-nikkei-0-84-on-us-fiscal-worries\/"},"modified":"2025-05-22T11:36:42","modified_gmt":"2025-05-22T11:36:42","slug":"asian-markets-close-sensex-plunges-645-pts-nikkei-0-84-on-us-fiscal-worries","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/22\/asian-markets-close-sensex-plunges-645-pts-nikkei-0-84-on-us-fiscal-worries\/","title":{"rendered":"Asian markets close: Sensex plunges 645 pts, Nikkei -0.84% on US fiscal worries"},"content":{"rendered":"
<\/div>\n

A wave of risk aversion swept through Asia-Pacific financial markets on Thursday, with most major indices closing sharply lower. <\/p>\n

The downturn mirrored a significant sell-off on Wall Street, as investor sentiment soured dramatically amid mounting fears that a new US budget bill could substantially exacerbate the country’s already substantial debt burden. <\/p>\n

Indian benchmarks, including the Sensex, were caught in the global downdraft, experiencing a notable decline.<\/p>\n

US deficit fears trigger global market retreat<\/h2>\n

The primary catalyst for the broad-based selling pressure was escalating anxiety over the fiscal trajectory of the United States. <\/p>\n

Concerns that a new US budget proposal, which includes tax cuts, could further inflate the federal deficit rattled global investors. <\/p>\n

This apprehension was compounded by last week’s debt outlook downgrade by Moody\u2019s, which continued to weigh on market sentiment.<\/p>\n

The nervousness was palpable on Wall Street overnight, where the three major averages closed significantly lower. <\/p>\n

Stocks sold off, pressured by a sharp spike in Treasury yields as traders grew increasingly worried about the potential strain on the US deficit. <\/p>\n

The Dow Jones Industrial Average lost a substantial 816.80 points, or 1.91%, to settle at 41,860.44. <\/p>\n

The S&P 500 shed 1.61% to 5,844.61, and the Nasdaq Composite slid 1.41% to 18,872.64. <\/p>\n

The 30-year Treasury bond yield touched its highest level since October 2023, last trading around 5.09%, while the benchmark 10-year Treasury note yield traded at 4.59%. <\/p>\n

US stock futures were flat in overnight trading on Wednesday following this sizable sell-off, with futures on the Dow Jones Industrial Average dipping 60 points, and S&P 500 and Nasdaq 100 futures showing little change.<\/p>\n

Asian bourses mirror Wall Street’s decline<\/h2>\n

The sell-off on Wall Street had a direct spillover effect on Asian markets. <\/p>\n

Japan\u2019s benchmark Nikkei 225 fell 0.84% to close at 36,985.87, while the broader Topix index lost 0.58% to end the day at 2,717.09. <\/p>\n

South Korea\u2019s Kospi slipped 1.22% to 2,593.67, and the small-cap Kosdaq declined 0.82% to close at 717.67. Australia\u2019s S&P\/ASX 200 also fell, dropping 0.45% to end the trading day at 8,348.7.<\/p>\n

In Greater China, Hong Kong\u2019s Hang Seng index slipped 1.19% to close at 23,544.31, while mainland China\u2019s CSI 300 experienced a more modest fall of 0.06% to close at 3,913.87. <\/p>\n

Indian markets succumb to global pressure; Sensex tumbles<\/h2>\n

Indian equity benchmarks mirrored the global rout, tumbling over 1 percent on Thursday. <\/p>\n

The BSE Sensex plummeted 644.64 points, or 0.79 percent, to close at 80,951.99. Similarly, the NSE Nifty50 fell 203.75 points, or 0.82 percent, to 24,609.7. <\/p>\n

The selling pressure was widespread, with all 13 sectoral indices on the NSE opening in the red. <\/p>\n

Broader markets also felt the impact, with the Nifty Midcap100 down 0.6 percent and the Nifty Smallcap100 losing 0.3 percent in early trade.<\/p>\n

Several factors contributed to the sharp decline in Indian markets:<\/p>\n