Asian Stocks Lower Today amid Speculation on the Fed’s Stimulus

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Asian Stocks Lower Today amid Speculation on the Fed’s Stimulus
Asian Stocks Lower Today amid Speculation on the Fed’s Stimulus

Asian Stocks Lower Today amid Speculation on the Fed’s Stimulus

Before the scheduled meeting of the Fed and any decision on its stimulus, the global market seems to have suspicions and that is a reason that their performance is being affected. In today’s trade most of the indexes fell to some extent; for instance, Japan’s Nikkei 225 fell 1.1 percent at 15,436.50. Similarly, Hong Kong’s Hang Seng dropped 1.2 percent to 23,448.71.

On the one hand, China’s Shanghai Composite shed 1.1 percent to 2,211.88, and on the other stocks in Asia were mostly down today, as investors factored in the prospect of the Federal Reserve reducing its lavish monetary stimulus this month or the next month.

Similar trend was seen in markets in Singapore and Australia.

However, the stocks in the Philippines, Malaysia and Thailand were a bit better today after the U.S. reported stronger-than-expected employment figures last week. Now, the investors in the Asian market suspect that the Fed would start to taper off its stimulus sooner or later. They believe that if not this month, the Fed will start it by the next month.

The fall in Asian stocks came after investors weighed the outlook for a paring of Federal Reserve stimulus. Whereas the MSCI Asia Pacific Index declined 0.7 percent as of 7:00 a.m. in London, Japan’s Topix (TPX) index retreating 0.5 percent. Japanese stocks were low as the yen rose against the euro and the dollar and that has direct impact on the Japanese exports.

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Downward movement was also visible in Euro Stoxx 50 Index futures which fell 0.2 percent. A similar trend was seen on the Standard & Poor’s 500 Index which were little changed; thus, following the indexes retreats from a record in New York yesterday. The gold prices are low as they dropped 0.3 percent.

U.S. Market and Indexes

There was a downward movement in the U.S. stocks and indexes. Whereas the Dow Jones industrial average fell 52.40 points, or 0.3 percent, to 15,973.13, the Standard & Poor 500 index lost 5.75 points, or 0.3 percent, to 1,802.62. Similarly, the NASDAQ composite lost 8.26 points, or 0.2 percent, to 4,060.49. Gold and crude prices were lower.
The U.S. which is fast emerging as a leader in crude production has huge stockpiles of crude and that is impacting the prices. In today’s trade benchmark US crude for January delivery was down 6 cents to $98.45 in electronic trading on the New York Mercantile Exchange.

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