The Crimea dispute is taking over the markets these days pretty badly, where the Wall Street plunged notably on Wednesday from its 1868 level down to 1840 level where it found support and is now trading at 1845 area in the Asian session on Thursday.
The markets are reflecting such moves every now and then because the statements are coming quite frequently from the politicians regarding the Crimea dispute, where US President Barack Obama stated that taking this dispute lightly would be like we are ignoring the lessons we learned from the world wars happened earlier.
The Asian traders are often lucky enough to get simple move the very next day the Wall Street takes a particular direction, as Forexminute gave a very useful tip to the traders earlier as well that Asian session normally follow the move taken in the US stock market the previous day, if that move is because of the fundamentals affecting countries other than the US as well.
Japan and China – Sluggish
The Japanese Topix index dropped by nearly 1.4% today, while the Nikkei 225 stock average lost by 1.2% as the dividend payments of nearly 1400 firms in the country couldn’t meet the benchmark level of points.
On the other side, the industrial profit growth showed a downward trend for China where only 9.4% of the profit was recorded from industrial sector of China as the manufacturing PMI data of the Chinese economy showed a concern over a slowdown last week.
I.T Shares Dive
The information technology companies are facing a rough day where the stocks of King Digital entertainment Plc dived by around 15%, as it was recently IPO’d in the NYSE.
Tencent holdings witnessed a loss of 7% in value of its shares where the Chinese stock market along with Hong Kong’s stock index brought it down. We call this impact a single-index model where the index movement for some reason brings down the individual stock’s price even if that stock is doing well.
To contact the reporter of this story: Jonathan Millet at email@example.com