Asian Stocks Fall as the OECD Lowered its Forecast for Global Economic Growth

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Asian Stocks Fall as the OECD Lowered its Forecast for Global Economic Growth
Asian Stocks Fall as the OECD Lowered its Forecast for Global Economic Growth

Asian Stocks Fall as the OECD Lowered its Forecast for Global Economic Growth

Asian stocks fell after five consecutive days’ gain amidst the news that the OECD lowered its forecast for global economic growth. The previous two days were better for Asian trading and valuations on the regional benchmark index reached the highest level since May; however, today’s performance is far away from the expected.

Major losers in today’s trading are Samsung Electronics Co. and WorleyParsons Ltd. (WOR). Their stocks fell as they reduced the profit forecast. Another reason for Samsung’s decline by 1.3 percent is that investors are awaiting a U.S. court decision on how much the South Korean handset maker should pay Apple Inc. for patent infringement.

Similarly, another major loser in today’s trade, WorleyParsons Ltd. slumped a record 26 percent. It is Australia’s largest oil and gas engineering company; however, it cut its profit estimate which hit its stock value. On the other hand, Micronics Japan Co. surged 21 percent in Tokyo. The growth it attributed to its enhanced full-year earnings forecast.

Major Indexes

Whereas Japan’s Nikkei 225 stock average was little changed at 15,128.49, Seoul’s Kospi lost 0.9 percent to 2,014.14. Similarly, China’s Shanghai Composite Index shed 0.2 percent to 2,189.79. On the other hand, Australia’s S&P/ASX 200 ceded 0.7 percent to 5,313.30. Besides Japan, Korea and Australia as well as China, most Southeast Asian markets were also down.

However, it was Hong Kong’s Hang Seng that proved investors right and added 0.3 percent to 23,721.26. Earlier Wall Street edged lower yesterday as investors picked over another round of earnings reports from companies like electronics retailer Best Buy and Campbell Soup.

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The U.S. Market

Whereas Best Buy fell after it warned of a challenging holiday season ahead, Campbell Soup was unable to maintain its profits which plunged 30 percent as sales of soup and its V8 beverages fell.

Major Indexes in the U.S.

The Dow could not continue its recent gains and dropped 8.99 points and closed at 15,967.03. Following the trend, the S&P 500 index fell 3.66 points. The index dropped 0.2 percent and closed at 1,787.87. Similarly, the NASDAQ composite declined 17.51 points which is 0.4 percent decline. It closed at 3,931.55.

Though indexes fell, in energy trading, benchmark U.S. crude increased to an extent as it was up 31 cents at $93.65 a barrel in electronic trading on the New York Mercantile Exchange. Similarly, the contract gained 31 cents to $93.34 in Tuesday’s trading.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com