Decline Continues in Asian Stocks on the Third Consecutive Day

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Decline Continues in Asian Stocks on the Third Consecutive Day
Decline Continues in Asian Stocks on the Third Consecutive Day

Decline Continues in Asian Stocks on the Third Consecutive Day

Though there is slight growth in the service sector in the U.S., there is no benefit for Asian stocks as they declined further this week on the third consecutive day. There was a significant fall in the regional benchmark index. The major loser was the MSCI Asia Pacific Index which lost 0.4 percent to 138.66 as of 5:14 p.m. in Tokyo.

A similar pattern was seen in European stocks where a little change was seen after data from Germany came to show that unemployment fell for the first time in five months. European investors are wary about China’s tighter rules to control its shadow-banking industry. Even the lower manufacturing growth in China is concerning for investors.
Major Indexes

Whereas Japan’s Topix (TPX) index slipped 0.7 percent, South Korea’s Kospi index added 0.3 percent. A major reason behind the fall of Japanese index was that yen fell furtehr against its peers. A similar pattern was followed by Australia’s S&P/ASX 200 Index which fell 0.1 percent as data showed the nation had a smaller-than-expected trade deficit in November.

Similarly, New Zealand’s NZX 50 Index lost 0.1 percent on a dismal trading day. On the other hand, Singapore’s Straits Times Index gained 0.2 percent. Regional index of Taiwan’s Taiex index rose 0.1 percent.

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On the other hand, U.S. futures were also little changed. Whereas Vestas Wind Systems A/S led advancing shares got a growth of 8.7 percent, Swedish Match AB dropped 6.5 percent after Citigroup Inc. advised investors to sell the shares amidst falling profits. Even the Stoxx Europe 600 Index was not faring well yesterday as it slipped less than 0.1 percent to 326.91 at 8:07 a.m. in London.

Thanks to better data from the U.S. service sector, Standard & Poor’s 500 Index futures gained 0.1 percent; however, the MSCI Asia Pacific Index lost 0.4 percent. The major loser in today’s trade is Sinopec Shanghai Petrochemical Co., an oil processor. The company’s shares fell 6.3 percent which concerned a lot of investors.

Similarly, Oversea-Chinese Banking Corp., Southeast Asia’s second-biggest lender, could not maintain its momentum and showed a concerning trend when it fell 1 percent in Singapore. Even on dismal trading day, Li & Fung Ltd., the world’s largest supplier of clothes and toys to retailers, obtained a better growth today as its stocks went up by 9.6 percent in Hong Kong.

On the index front, the MSCI Asia Pacific Index lost 0.4 percent to 138.66 as of 5:14 p.m. in Tokyo.

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