Whereas there was a decline in most of the regional stock markets in Asia, Indian shares outperformed on Thursday on hopes for an opposition party victory in state elections. The exit polls conducted in the recently held five states in India show that the Bhartiya Janata Party is winning four states elections; it sent positive waves among investors and traders.
However, the rest of region fell ahead of key U.S. data and central bank meetings.
Similarly, investors are still waiting for the U.S. consumer sentiment and nonfarm payrolls which are all due out on Friday and will likely provide them with clues on when the Federal Reserve may taper its stimulus program and to what extent.
On a dismal trading day in the regional market in Asia, Japanese stocks hit a new two-week closing low for a second session. A major development in Japanese economy is that its currency is at 102 per dollar in Asian trade. Its fall is helping out Japanese exports oriented companies perform better in the stock market.
Major Losers in Today’s Trade in Asian Stock Market
The major losers in today’s trade in Japan are automakers as most of their returns depend on the export and any strengthening of yen means losses. Whereas Nissan Motor fell by 3.5 percent, the losses for Mazda Motor were 2.7 percent. Following the trend another major automaker Suzuki Motor fell by 2 percent in today’s trade.
Following the trend, Sydney dropped a little and faced a loss of 1.4 percent as Australian shares hit a seven-week low. Aussie stocks closed lower after the nation’s October trade deficit came in wider than expected by the investors. The major loser in today’s trade was Qantas Airways which fell 11.2 percent after the airline flagged profit warnings for the first half of 2014.
European Stocks and Indexes Fell Yesterday
Earlier yesterday, European equity-index futures fell to some extent and followed the trend set by the Asian stocks. Whereas Euro Stoxx 50 Index futures slid 0.3 percent by 7:12 a.m. in London, the Standard & Poor’s 500 Index were little changed in the overnight trade. There was also a fall in the MSCI Asia Pacific Index which dropped 0.4 percent to a three-week low.
There was similar trend in the benchmark indexes in Japan and Australia. Australian index fell by 0.9 percent. Market observers believe that any decision on the monetary policy to be set by the European Central Bank and Bank of England officials will determine the future course of the stocks in the region.
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