Business & Economics News

Sea of red ink across Asia as Stocks suddenly fall

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Markets in Asia plunges after Wall Street’s suffered a major drop on Thursday, October 11.

Shanghai composite in China Region suddenly fell shedding 5.2% to close at 2,583.46, its lowest level in four years. Tech-heavy Shenzhen is one of the companies who suffered having 6.4% to end at 1,293.90 points fall down.

Hang Seng in Hong Kong was not much affected by the said event having 3.6% to close 25,250.41 falls only whereas Taiwan’s Taiex immerse 6.3% to end at 9,806.11.

According to Zhang Yambing, an analyst at Zheshang Securities, Chinese investors overacted and panicked to the said fall of stock because Chinese market already suffered a blow of confidence on Monday and that the investors have a very sensitive mindset.

The Nikkie 225 of Japan also faltered dropping 3.8% to finish at 22,590.86 points while Kospi of Southeast Asia continued falling having more than 4% to close at 2,136.31.

Sydney’s ASX 200 also dropped 2.74%. Straits Times Index in Singapore was also affected having a fall by more than 2% in afternoon trading.

For Jakarta’s composite, it went down to 1.7%, the same as KLCI in Malaysia. Nifty of India 50 fell by nearly 2%.

Ed Campbell, a senior portfolio manager at QMA said that the red inks are the major effect moving of interest rate in the past five days.

Europe and London’s FTSE 100 lowered in the morning trading having a loss of nearly 2% whereas German DAX and French CAC 40 fell by more than 1%.

The large fall of the global economy was said to be the cause of a trade war between US and China which is happening for a month already.

Meanwhile, investors are also becoming concern about the rising tension and are becoming a new Cold War over Washington and Beijing.

Both Chinese and Asian stocks are under pressure since the yield on 10-year US Treasury bonds jumped over 3% last week. Strong US data happened following the said jump.