Global Selloff Follows Wall Street Rout: Asia Hard Hit, Europe Less So

Worldwide stock slump hits media and tech shares as well

A global stock market selloff Tuesday wiped billions of dollars from corporate values, with media and tech stocks among those dented. The selling pressure meant that, in many major markets, gains registered in a buoyant January were wiped out.

Following a 4.6% drop in the Dow Jones industrial average Monday, the international selloff began Tuesday in the Asia-Pacific region, where all the main bourses except for South Korea’s suffered major losses of 3% to 5%. The main European exchanges all slid back as well, though to a lesser degree than in Asia.

Japan’s Nikkei 225 index shed 4.7%, closing at 21,610 points, and Australia’s ASX200 index plunged 3.2% to 5,883 points. In China, Hong Kong’s Hang Seng index closed down a brutal 5.1%, at 30,595 points, and the Shanghai exchange lost 3.4%.

In Britain, London’s FTSE index of 100 leading companies slumped by nearly 194 points to end the day with a loss of 2.64%, a less pronounced drop than witnessed the day before in the U.S. but hitting a one-year low at one point nonetheless. Commercial broadcaster ITV was down 2.6% while satcaster Sky, an acquisition target for 21st Century Fox, was more robust, down only 0.5%.

France’s CAC 40 closed 2.1% down to land at 5,181 points. Luc Besson’s EuropaCorp, already struggling with financial woes, dropped by 2.4%. Vivendi’s stock price dipped 1.4%.

Germany’s DAX shed 2.15%, with local media giant ProSiebenSat.1 sliding 2.75%. Another of Europe’s big-hitters, pan-European broadcaster and production group RTL, lost 2%.

Media and tech stocks in Asia fared badly, in line with or slightly worse than the local indexes as a whole. Chinese online giant Tencent fell 7% on Tuesday to HK$410 per share. State-backed distributor China Film Co. dropped 5.2% to RMB15.89, while private-sector players Huayi Bros. and Enlight Media tumbled by 6.6% and 4.3%, respectively. Japan’s leading film group Toho Co. was 4.8% lower at JPY3,465.

Only South Korean shares seemed able to defy the regional trend of heavy losses. The KOSPI index was down just 1.5% at 2,453 points. Leading Korean entertainment firm CJ E&M was off by only 0.44% to 89,500.

The trigger for the worldwide rout was last Friday’s U.S. payroll news, which came in higher than expected. That stoked fear of wage-driven inflation for the first time in nearly a decade.

For many market watchers, a correction had been expected after a long bull run. But the speed and scale of the pullback caught many by surprise. The fear now is that if markets do not stabilize quickly, more cautious assumptions about equities, bonds, currency and interest rates will set in. Increased risk-aversion by funds and other investors will then make it harder for companies to pull off IPOs, raise venture capital, or refinance existing borrowings.

Elsa Keslassy contributed to this report.

More Biz

  • Woodstock co-producer and co-founder, Michael Lang,

    Woodstock 50 Organizers Are Optimistic but Vague Before Town Meeting

    Woodstock organizers Michael Lang and Richard Peck were optimistic but vague when speaking with reporters at a hastily announced open house for the festival held in Vernon, New York on Monday night. The town’s Vernon Downs is the most recent proposed site for the trouble festival, which has been dogged by financial and organizational problems [...]

  • What Is Equity, Roc Nation’s Indie

    What Is Equity, Roc Nation’s Indie Distribution Company?

    When news broke earlier this year that Jaz-O, Jay-Z’s longtime friend-turned-foe-turned-friend-again from Marcy Projects, had signed with Roc Nation, most reports glossed over exactly which company the rapper had signed with. His deal, for his Kingz Kounty Media Group, is actually with Equity Distribution, the independent distribution arm of the Roc Nation family of companies, [...]

  • Andhadhun

    Booming Digital Lifts Eros Indian Film Distribution Giant

    Eros International, India’s largest and most controversial film distributor, says that its digital revenues now outstrip conventional theatrical and syndication revenues. Its Eros Now streaming platform claims 18.8 million paying subscribers. The New York-listed company reported annual results that were distorted by multiple adjustments to presentation. Reported revenues in the year to end of March [...]

  • The dark Manhatten skyline, seen from

    StubHub Refunds $500,000 to Customers Shut Out by New York Blackout

    Saturday’s blackout in New York had an outsized effect on the city’s nightlife, with Madison Square Garden and the entire Broadway district seeing multiple shows cancelled due to the the power outage. As a result, StubHub has refunded more than $500,000 worth of tickets for cancelled events. According to a statement from the company, the StubHub [...]

  • Weapons Cache

    D.A. Files 64 Charges in Bel-Air Weapons Stockpile Case

    The L.A. County District Attorney’s office has filed 64 counts against Girard Saenz, the man who allegedly kept a stockpile of more than 1,000 weapons at a Bel-Air home linked to the Getty family. Saenz is accused of illegal possession of assault weapons, transferring handguns without a dealer license, possession of short-barreled shotguns, and possession [...]

  • 9-1-1: Angela Bassett in the series

    Fox Sees Primetime, Sports Ad Gains As TV Upfront Wraps

    Fox Corporation is the latest to benefit from stronger-than-expected trends in TV ad spending, as the company notched strong gains in advertising commitments for its next cycle of programming – its first since selling off a large chunk of its media assets to Walt Disney. Ad demand was stronger than many executives anticipated, according to [...]

  • BMI Promotes David Levin to Senior

    BMI Promotes David Levin to Senior VP of Licensing

    BMI today announced that David Levin has been promoted to Senior Vice President of Licensing, effective immediately. In his newly expanded role, Levin is responsible for all of BMI’s domestic licensing and revenue generation, encompassing radio, television, digital media, cable, satellite and general licensing.  Levin, who will oversee teams in New York and Nashville, reports [...]

More From Our Brands

Access exclusive content