Australian superannuation accounts are set to tumble as share markets plunge amid growing recession fears in the US and Japan . More than $100 billion was wiped off the value of Australian shares in the Monday rout, taking total losses to upwards of $160 billion over two days as markets plunged globally. Tokyo’s stock exchange plunged more than 14 per cent on Monday and Australia ’s market finished almost 4 per cent down as shares endured some of their worst days since the coronavirus outbreak in March 2020.
Super funds directly or indirectly own about a quarter of the shares and trusts traded on the Australian Stock Exchange. And with more than 60 per cent of retirement savings exposed to Australian and overseas shares, fund managers fear the US and Japan market plunges will create a global bear market. Worries have been aggravated by tumbles in speculation-driven technology plays and American consumer spending stocks after the US Federal Reserve decided last Wednesday not to cut official interest rates.
Talks of a manufacturing slowdown in the US, rising unemployment and a disappointing update from online retail giant Amazon further sapped confidence on Wall Street. Nick Bruining The tech-heavy NASDAQ index slipped more than 5.5 per cent in the last two trading days of last week, officially taking it into a correction, given it has now fallen more than 10 per cent since hitting a record high on July 10.
Australian shares have lost an average of 5.8 per cent of their val.