As Selloff Hits Stocks, Some Investors Point to Jerusalem

Investors watching the selloff that enveloped Asian markets Wednesday saw a host of reasons, ranging from profit-taking to the continued drop in technology stocks. But one matter was prominent for some commentators: U.S. President Donald Trump’s plan to formally declare Jerusalem as Israel’s capital.

Japan’s Nikkei 225 Stock Average fell 2 percent for its worst day in more than eight months, extending declines as the yen gained after U.S. administration officials told reporters Tuesday evening in Washington -- or late Wednesday morning in Tokyo -- that Trump planned to announce the embassy move. The MSCI Inc. gauge of Asia-Pacific stocks fell for an eighth day, as markets from Hong Kong to South Korea saw losses of more than 1 percent.