Asia stocks fall after Wall Street Christmas Eve plunge
"The market is being pummeled from all directions," said Stephen Innes, head of Asia-Pacific trading for online broker Oanda.
Investors are increasingly concerned with a decline in global economic growth, according to market experts. These concerns have been intensified by US President Donald Trump's attack on Federal Reserve Mayor Jerome Powell to continue raising interest rates.
American stocks entered a tailspin Monday after Trump tweeted that "the only problem our economy has is the Fed" troubled fear that he can burn Powell.
Investors around the world already have a lot to worry about, including China's economic downturn, unresolved US and China trade wars and Brexit's unpredictable outcomes.
Despite strong growth this year, the US economy has become a wild card in recent weeks, as investors have been worried about the combination of slowing growth and rising interest rates. US stocks are in pace for their worst December since the Great Depression.
US Treasury Secretary Steven Mnuchin added the uncertainty on Sunday by releasing an unusual statement saying he had named the CEOs of the largest US banks. He said the managers assured him that their banks are healthy and have "ample liquidity" to lend to consumers and businesses. "Markets continue to work properly," Mnuchin said.
The use of words usually reserved for times of crisis – even though there was no sign of a spooked investor.
"This is the type of announcement. The question arises whether the Treasury sees problems that the rest of the market lacks," said Cowen & Co. analyst Jaret Seiberg in a note to clients.
The partial US government's suspension has added to the feeling of disarray. 19659004] Several major stock markets in the Asia Pacific region closed Tuesday to Christmas, including Hong Kong, Australia and South Korea. Most European markets are also closed, while US markets will be reopened on Wednesday.
Kabeya said he is skeptical investors' downbeat mood will improve before the turn of the year.
CNN's Junko Ogura, Rich Barbieri, David Goldman and Nathaniel Meyersohn contributed to this report.