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.
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.