Asian stocks joined a global markets selloff after the European Central Bank shocked investors by failing to deliver the dramatic stimulus moves they expected.
Japan’s Nikkei lost more than 2%, while China’s Shanghai Composite fell 1.7%. The ASX All Ordinaries closed down 1.4%, and all other Asian markets finished Friday in the red.
The dismal day in Asia followed a rough Thursday for investors around the world. Germany’s DAX and France’s CAC 40 fell 3.6%. Markets in Spain lost 2.4%.
In the U.S., the Dow dropped 252 points, and the S&P 500 fell 1.4%, its worst day since late September, while the Nasdaq lost 1.7%.
On Thursday, the ECB cut interest rates to try to boost Europe’s economy, but failed to take stronger stimulus measures, disappointing investors.
The ECB cut its deposit rate deeper into negative territory — effectively charging banks more for holding money with it — and said it would continue to buy government bonds and other assets until March 2017, six months longer than previously planned.
But it said those purchases would continue at a rate of 60 billion euros ($65 billion). Investors were surprised, as they had been expecting the ECB to announce an increase of at least 10 billion euros a month.