Dramatic fall in Australian Stocks, Japanese Stock Market Slides

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Dramatic fall in Australian Stocks, Japanese Stock Market Slides
Dramatic fall in Australian Stocks, Japanese Stock Market Slides

Dramatic fall in Australian Stocks, Japanese Stock Market Slides

After bright trading yesterday, Australian stocks fell again. The same trend was observed in Japanese stock market where traders were seen selling Japanese shares. In today’s trading the MSCI Asia Pacific Index slid 0.3 percent to 142.26 at 3:22 p.m. in Tokyo. The Shanghai Composite Index followed the trend and declined to an eight-week low.

The fall in the Shanghai Composite Index is attributed to the fact that the size of a central bank cash injection disappointed the market which was expected. A major fall in Australian trade has been the declining of Aussie dollar which dropped to a two-week low amidst the news that the central bank assumes that the currency may weaken.

The Aussie dollar declined against all 16 of its major peers which led to a fall in the Standard & Poor’s 500 Index futures. In today’s trade, Standard & Poor’s 500 Index futures fell by 0.1 percent. Major losers were Apple (AAPL) Inc. whose stock fell in after-hours trading. Similarly, Copper and lead lost at least 0.3 percent after receiving positive trades in the last three days.

Major Losers

On a gloomy trading day, Shares of Standard Chartered Plc dropped 1.6 percent in Hong Kong today. The decline according to traders is due to the company’s revenue loss in the third-quarter. The lender could not manage profits thanks to weak corporate banking business.

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Some other banking organizations like UBS AG, Deutsche Bank AG and Lloyds Banking Group Plc, etc. are going to announce their revenue report earnings in Europe today which according to some traders is going to be a major factor that is going to influence stock markets in the next couple of days.

Komatsu Ltd. Slumps Further

Apart from banking organizations, construction companies too facing challenge. A major loser in today’s trading is Komatsu Ltd, the world’s second-largest maker of construction equipment, declined 8.1 percent in Tokyo after trimming its full-year profit forecast. Similar trend was followed by SK Hynix which fell 3.5 percent in Seoul.

Earlier yesterday US stocks did not fare well and it was a quiet trading throughout amidst the speculation that the Fed may decide on stimulus in the ongoing two-day US Federal Reserve policy meeting that concludes tomorrow. At the closing the Dow Jones Industrial Average rose 1.86 points (0.01 percent) to 15,572.14 and NASDAQ Composite Index fell 3.23 (0.08 percent) to 3,940.68.

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