Whereas Asian stocks fell after the Federal Reserve Bank of Dallas President Richard Fisher requested the U.S. central bank that it should end its record stimulus as soon as possible for larger interests, Indian and Israeli stocks fared better. In fact, Israel’s benchmark index gained the highest in two-week as U.S. equities were on their longest rally since July. Indian stocks were sky high during the special session.
Major Losers in the Asian Market
At 1:42 PM in Hong Kong, the MSCI Asia Pacific excluding Japan Index (Japanese markets are closed today) fell 0.2 percent to 478.38. Some major financial companies of South Korea such as Shinhan Financial Group Co., Mirae Asset Securities Co. and Hana Financial Group Inc. fell dramatically. Their stocks dropped more than 2.4 percent.
Following the trend, Australia’s largest listed drink manufacturer, Coca-Cola Amatil Ltd. (CCL) slumped 4.7 percent. The decline in CCL is attributed to its forecast for the current year’s earnings where the company estimates that it is going to fall. On the other hand, China Resources Enterprise Ltd., a brewer and retailer, gained 1.5 percent.
Indexes Fall in Asian Trading
Slight to heavy fall was seen in Asian indexes. Whereas Singapore’s Straits Times Index gained 0.2 percent, Australia’s S&P/ASX 200 Index (AS51) slipped 0.4 percent. Similarly, Taiwan’s Taiex Index retreated 0.4 percent. Following the trend, Hong Kong’s Hang Seng Index (HSI) slipped 0.1 percent after a slight initial gain of 0.4 percent.
On a bright note, China’s Shanghai Composite Index added 0.1 percent amidst the news that China’s Communist Party leaders will enter a policy-making summit this week. The latest data show that services and manufacturing sectors are on the right path. A non-manufacturing Purchasing Managers’ Index rose to the highest level this year in October.
Israeli and Indian Stocks Faring Better than Expected
On bright side, Israel’s benchmark index rose to a two-week high. The TA-25 Index advanced 0.4 percent to 1,293.42 in Tel Aviv which is the highest close since Oct. 27. In a similar trend in India, the 30-stock S&P BSE Sensex rose 0.2 percent to 21,239.36 in a special, shortened trading session for the Diwali festival in Mumbai.
Major gainers in the special trading on Diwali were Tata Motors Ltd, and the government sector company Indian Oil Corp. The unprecedented success of the special trading day is expected to help the largely gloomy economy of the country.
To contact the reporter of this story: Jonathan Millet at email@example.com