Asian shares track Wall St decline; bitcoin sinks

TOKYO (AP) — Asian shares fell Wednesday, tracking a decline on Wall Street that was led by big technology stocks. The price of bitcoin plunged again after the China Banking Association warned of risks associated with digital currencies.

Japan's benchmark Nikkei 225 fell 1.6% in afternoon trading to 27,964.19. Australia's S&P/ASX 200 slipped 1.9% to 6,931.70. The Shanghai Composite slipped 0.6% to 3,506.37. Markets were closed in Hong Kong and South Korea.

A day after Japan reported its economy contracted at a 5.1% annual rate in the first quarter of this year, Fitch Solutions forecast the economy will grow just 2.5% this year, highlighting the challenge as the country battles surging coronavirus infections.

“The slow vaccination roll-out in the country means that the country continues to face risks from sporadic movement restrictions and other tightening measures that will disrupt a healthy recovery in activity," the report said.

The Tokyo Olympics, due to start in late July, will be held in such a reduced capacity, “the positive economic gains from the event will likely be negligible," it said.

Bitcoin's price fell more than 9% to about $39,000 after the China Banking Association warned members of risks associated with digital currencies.

A statement posted on the industry association's website said all members should “resolutely refrain from conducting or participating in any business activities related to virtual currencies."

The notice said such digital currencies were subject to great volatility.

Bitcoin was trading above $50,105.00 last week after its price plunged 10% following Tesla CEO Elon Musk's reversal of his stance on the digital currency when he said the electric car maker would no longer accept it as payment.

On Tuesday, Stocks closed lower on...