Asian stocks fell today to some extent as the Chinese manufacturing sector is slowed down. Investors are also wary about the Federal Reserve’s plan to cut stimulus. Yesterday, ForexMinute reported that as IMF chief had predicted about the global slowdown, its impact is also being seen in the stock markets.
Nevertheless, profit growth at China’s industrial companies slowed, the regional benchmark index dropped for a fourth day. Though for some time Asian stocks seemed to be stabilizing, selling pressure seemed higher as investors are still concerned about the U.S. Fed decision on scaling back stimulus.
Earlier, the MSCI Asia Pacific Index declined further by 0.3 percent to 134.37 as of 3:14 p.m. in Tokyo. A similar trend was seen in the regional gauge that dropped yesterday by the most since June as part of a global slump sparked by weaker-than-expected data from China. Other regional economies including India fared badly.
Major Indexes’ Performance
Negative trade continued in major indexes. Whereas S&P 500 closed at 1,781.56 and saw a decline of -0.49%, the DOW 30 closed at 15,837.88, a loss of -0.26%. A similar pattern was seen in NASDAQ which closed at 4,083.61 i.e. a decline of -1.08%. Russell 2000 too faced a challenge as it declined by -1.43% and closed at 1,127.73.
Though the stocks were not faring well, futures on the S&P 500 added 0.3 percent today. The result was positive as the measure declined 0.5 percent yesterday. On the other hand, shares of Apple sank about 9 percent in after-market trading in the U.S. The major reason behind the decline was that the company failed to realize its sales.
Apple’s forecast for second-quarter sales of $42 billion to $44 billion is far lower than what it had claimed previously. There was not much in the sales of iPhone that can boost investors’ confidence. A similar trend was seen in the stock performance of BHP Billiton Ltd., as it fell 2 percent. LG Display Co. lost 3.3 percent in Seoul.
LG Display Co and Apple Inc are closely related with each other and its performance was affected by Apple Inc. lower forecast sales. However, there was some positive trade today for Komatsu Ltd., the world’s second-largest maker of construction equipment. The company gained 1 percent in Tokyo as after biggest rival Caterpillar Inc. projected earnings that topped expectations.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org