Joe McDonald, Associated Press
Published Tuesday, December 25, 2018 07:40 PM EST
Last Updated Tuesday, 25 December 2018 09:12 EST
BEIJING – Japan's shares fell on Tuesday and other Asian markets declined after Wall Street's heavy losses, triggered by President Donald Trump's criticism of the US central bank.
The Nikkei 225 dropped by an unusually wide margin of 5 percent to 19,155.14. The Shanghai Index Index closed at 0.9 percent to 2,504.82, after dropping as high as 2.3 percent at noon. Provisions in Thailand and Taiwan have also declined.
Markets in Europe, Hong Kong, Australia and South Korea were closed to Christmas.
Wall Street's indexes fell more than 2 percent Monday, after Trump on Twitter said the Fed was "the only problem" of the US economy. Efforts by Secretary of State Stephen Monchin to calm the fears of investors just seemed to make things worse.
US actions are followed for the worst December of 1931 during the Great Depression.
Shanghai this year records almost 25 percent. Tokyo, Hong Kong and other markets are on track to put an end to 2018 by more than 10 percent.
Markets were fueled by concerns about the slowdown in the global economy, the US and China's tariff battles, and another rise in interest rates by the Fed.
Trump on Monday morning raised fears that the economy was destabilized by the president who wants control over the Fed. Members of the board nominate the president, but decides independently of the White House. Chairman of the board, Jerome Powell, was nominated by Trump last year.
"The only problem our economy has is the Fed," said the president of Twitter. "They do not have a sense of the market, do not understand the necessary trade wars or strong dollars, and even democratic breaks over the borders. The Fed is like a powerful golf player who can not achieve it because it has no touch – it can not be put ! "
The Standard & Poor's 500 index dropped 2.7 percent. The benchmark index was down 19.8 percent from its peak on September 20, close to the 20 percent drop, which would officially end the longest bull market in stock in modern history – a period of nearly 10 years.
The industrial average Dow Jones sank 2.9 percent, while Nasdaq dropped 2.2 percent.
On Sunday, Mnochin made calls to the heads of the six largest banks in the United States, but the move triggered only concern for the economy.
Most economists expect the US economic growth to slow down in 2019, rather than slip into recession in full. But the president expressed his anger over the Federal Reserve's decision to increase its key short-term rate four times in 2018. It is intended to prevent the economy from overheating.
Technological reserves, healthcare companies and banks have taken on some of the toughest sales losses on Monday. Wales Fargo slipped 3.4 percent, Microsoft 4.2 percent, and Johnson and Johnson 4.1 percent.
US markets reopened on Wednesday.
On energy markets, crude Brent oil, which is used for international oil prices, lost 9 cents to $ 50.68 a barrel in London. The deal fell to $ 3.33 on Monday to close at $ 50.77.
In currency trading, the dollar dropped to 110.28 yen from Monday 110.45 yen. The euro was slightly changed to $ 1.1407.