Capital Economics: The pullback in Asian stock markets reflects the bearish sentiment in US stocks

According to Jinshi, Thomas Mathews, head of Asia-Pacific markets at Capital Economics, stated that the pullback in Asian stock markets seems to be a direct response to the decline in U.S. tech stocks yesterday. Particularly, the South Korean stock market has performed strongly recently, so when sentiment shifts, their losses can be larger. Mathews expressed doubts about whether the sell-off in U.S. tech stocks will intensify and persist, believing that compared to the U.S., Asian valuations remain low, which may limit the downside potential for a global downturn.