European and Asian Stocks Take a Big Beating

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European and Asian Stocks Take a Big Beating
European and Asian Stocks Take a Big Beating

European and Asian Stocks Take a Big Beating

Earlier, European stocks dropped for a third day thanks to the Asian shares which closed lower yesterday. Even today, most of the indexes in the Asian stock markets opened lower that included indexes from India and Japan. In fact, Japan led the slide in Asian stocks wherein the Nikkei tumbled 4.2 percent to 14,008.47 and is down 14 percent over the past month.

The major loser in Japanese stock market was Toyota Motor Corp. which fell 5.7 percent before reporting a fivefold surge in its quarterly profit. A similar trend was followed by Sharp Corp. as its stock prices fell by 8.4 percent. The regional market saw a downward movement as even South Korea’s Kospi shed 1.7 percent to 1,886.85.

Major loser in the South Korean stock market was Samsung Electronics Co. which opened 1.8 percent lower. Other regional stock markets also fell; whereas Hong Kong’s Hang Seng declined 2.9 percent to 21,397.77 on its first day after holiday, Australia’s S&P/ASX 200 dropped 1.8 percent to 5,097.10.

There is no stock trading today as markets in China and Taiwan are closed due to the local lunar New Year celebration. Today other regional stock markets in the Philippines, Indonesia and Thailand though opened; they too fell to some extent.

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European and U.S. Stock Markets

All major indexes fell. Whereas S&P 500 closed at 1,741.89 at the loss of 40.70 points i.e. -2.28%, DOW 30 too faced a decline when it closed at 15,372.80 losing 326.05 points i.e. 2.08%. A similar pattern was seen in the NASDAQ which closed at 3,996.96. It lost 106.92 points. Earlier, investors had expected for a better trade in the U.S. stock market but they were left disappointed.

Major loser was Vestas Wind Systems A/S as it lost 5.5 percent after saying it seeks to raise capital. Similarly, ARM Holdings Plc and BP Plc fell as these two companies could not meet the expectation after reporting quarterly earnings. However, UBS (UBSN) AG and Munich Re were able to do comparatively better when they added at least 1.1 percent each as they declared their quarterly earnings.

The U.K.’s third-largest natural-gas producer, BG Group Plc (BG/), slipped 0.5 percent to 1,020 pence. The company could not meet the expectations from investors when it declared its first quarterly loss since 2000. The company admitted that as Egyptian exports were disrupted and costs rose, it lost $1.08 billion in the fourth quarter.

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