China, which became a manufacturing center for the last two decades, is sliding now as the same sector is likely to shrink to some extent this year. Its impact is now being seen in stock markets across Asia which sank today. Nevertheless, as a report indicated that China’s manufacturing will decline, the major indexes and investors were rattled.
According to the sources, Chinese manufacturing looks set to contract in January for the first time in six months. This attests to the fact that a slowdown is on the way that is going to complicate reform efforts. In fact, the report on China’s massive manufacturing industry shows that its economy is decelerating and it will be a major challenge for the newly appointed president.
Whereas Japan’s Nikkei 225 was down today by 0.4 percent to 15,758.04.79, Hong Kong’s Hang Seng also declined 1.4 percent to 22,766.27. A similar pattern was seen in South Korea’s Kospi which lost 1.1 percent to 1,949.59. Following the pattern in the Asian regional market, Australia’s S&P/ASX 200 fell 1.2 percent to 5,254.50. However, the Shanghai Composite Index in mainland China retreated 0.5 percent to 2,041.27.
Earlier in the U.S. trade, the S&P 500 reached 1,844.86 points, which is a gain of 1.06 i.e. 0.06%. Similarly, NASDAQ closed at 4,243.00 and gained 17.24 i.e. 0.41%. Whereas Russell 2000 closed at 1,181.29 up by 5.57 i.e. 0.47%, DOW 30 was down and closed at 16,373.34 down by 41.10 i.e. a decline of 0.25%.
Thus, it was a mixed trading for the U.S. investors as the stocks stalled amidst concern among investors who were examining earnings reports for signs of profit growth. They were extremely disappointed from the results that came from companies such as IBM and chipmaker AMD. On the other hand, India stock market has a mixed trading day.
S&P BSE SENSEX is moving up and trading at 21365.43 at 1300 IST. It is a gain of 27.76.Early morning trade in India shows that Larsen & Toubro surged 3.61 percent on the BSE. The surge is attributed to the fact that the company reported a 22 percent rise in net profit for the December quarter yesterday. A similar pattern is being seen in Sun Pharma whose stocks are up today. Other gainers in today’s trade include Bharti Airtel, BHEL, GAIL (India).
To contact the reporter of this story: Jonathan Millet at email@example.com