Despite better trading yesterday in most of the Asian market, shares fell Thursday to some extent. A major reason behind the fall is being cited that weak economic data from China and Japan deepened concerns over ongoing reductions in U.S. monetary stimulus. Earlier the IMF chief opined that due to stimulus tapering and weakening output from China, the global economy may slowdown.
Most of the companies fell to some extent in the regional stock market. A downward movement of the shares was seen in Australia, New Zealand, mainland China, Indonesia, Singapore and the Philippines. The only exception was the Malaysian stock market wherein shares rose. A slight decline was seen in Japan’s Nikkei 225 index which was down 2.6 percent at 14,887.96.
The major reason behind the fall in the Nikkei was that the government reported that retail sales fell 1.1 percent in December from the month before. ForexMinute has reported earlier many times that Japan had a roller-coaster 2013 where it saw a euphoric rise. However, the sentiment seems to have disappeared the way the stocks are faring amidst lower exports.
Now, thanks to the recent volatility in emerging market currencies, some investors are looking for safe haven currencies such as the yen and dollar which are faring comparatively well. Another reason that investors are losing interest in stocks in Asian stocks seems to be that China’s manufacturing contracted in January added to the gloom.
Major Indexes in Asia, Europe, U.S. Fall
Even Hong Kong’s Hang Seng is down 0.5 percent at 22,035.42. Though some of the Asian stock markets got a temporary boost yesterday, it did not sustain for long. A major setback has come from the U.S. Federal Reserve which has decided to further taper its mortgage and long-term bond purchases, which played a vital role in the upward movement of the Asian stock market.
On the other hand, disappointing earnings from big U.S. companies affected the performance of major indexes in the country when the Standard & Poor’s fell 18.30 points, or 1 percent, to 1,774.20. A similar trend was seen in the Dow Jones industrial average which fell 189.77 points, or 1.2 percent, to 15,738.79.
The impact was also visible in the NASDAQ composite wherein it was down by 46.53 points, or 1.1 percent, at 4,051.43. A similar trend was seen in Europe wherein Germany’s DAX fell 0.8 percent to close at 9,336.73. On the other hand, Britain’s FTSE fell 0.4 percent to 6,544.28. Even France’s CAC 40 lost 0.7 percent to 4,156.98.
To contact the reporter of this story: Jonathan Millet at email@example.com