Contrary to expectations, Asian stocks fell again and the trend that was broken two days’ ago is continuing. In yesterday’s trading, the Asian market was opened on a dull note and the same trend is being followed by the stocks today which fell to an extent. The same future was waiting for the regional benchmark index heading for the longest streak of weekly losses in five months.
Market observers believe that the fall is attributed to the fact that U.S. economic growth fueled concern the Federal Reserve may reduce stimulus sooner than expected. However, there are still some doubts as the unemployment rate is not going down as was expected by the Fed which had earlier said that it would not interfere with stimulus till the employment rate goes down.
Regional Stocks in Asia
Whereas Thai stocks fell today and continued the losing streak for a third straight week, the Thai key SET index was down 1.2 percent at 1,407.73. This is happening amidst the news that the political uncertainty in the country is weighing consumption-related stocks which are being led by shares of Big C Supercenter Pcl and Advanced Info Service Pcl.
Following the trend, the Philippine index also declined to an extent and slide one percent to the lowest level since Oct. 4. Investors believe that it is on track for a drop of 3.3 percent on the week as a lot of foreign investment is at stake as investors are running away. In fact, they have withdrawn a net $31 million in the week to Thursday.
Indonesia Poised to do better in the Third Quarter
There was a slight decline in stocks in Indonesia wherein they edged down 0.5 percent which reduced their gains so far on the week to 0.7 percent. Though Indonesia is on track to outperform regional peers this week, it is still not clear how much will it be. Its market is being helped by strong private consumption data in the third quarter.
Malaysia Market Remains Unchanged
On the other hand, the Malaysia index was nearly unchanged; rather, it recovered from early losses as investors were interested in buying select shares. Here shares of MISC Bhd climbed 1.2 percent which in fact is the second biggest percentage gainer on the benchmark. The company earlier reported that it has got attractive returns in the third quarter.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org