The Asian stocks dropped the most in nearly three months, where the indices also fell and recorded the biggest loss in this time period, and this move was a result of a sharp decline in some of the U.S. stocks since November. The reason behind this fall of such stocks is the valuation concern, where analysts are predicting the worthiness of the stocks to fall below the expectations of investors which can lead to lowering down the share prices.
SP500 Sharp Plunge
The S&P 500 index was trading at 1834 level at the start of the U.S. session on Monday, after which the bears entered heavily in the market that took the index down to the 1808 support level within half an hour which was nothing less than a free fall, considering how Wall Street has been performing for the past few months.
The move was chased by the traders in the Asian market as well, where the Japanese yen got stronger against the major currencies while the stock indices like the MSCI Asia Pacific lost around 1.4% and Australia’s S&P fell 1.5%.
Honda goes down the Street
The stock price of Great Wall Motor company lost as much as 12% today as the carmaker company hinted that the introduction of its Haval HB model might get delayed by three months since it is facing some technical deficiencies.
The shares of Honda motor company dropped by 3.7% and the impact is inflated because the North American market alone contributes to around 47% of the company’s sales.
The correction in a bullish direction is currently on the go in the Wall Street and Asian stock indices where the bearish momentum would remain there where the SP500 might go down to test the 1800 psychological level. The impact of poor jobs data, if not arises the need to inject more money, would lead the indices to fall where the markets can go bearish for the short to medium term as well.
To the reporter of this story: Jonathan Millet at firstname.lastname@example.org