Bearish trading is continuing in Asian trade amidst the speculation that the Fed may taper stimulus to a great extent. Earlier, in yesterday’s trading, the U.S. stocks fell which led to a fall in the Standard & Poor’s 500 Index. It was the first first two-day slide in three weeks. Following the trend, Asian stocks opened lower today.
Speculation on the Fed’s decision to taper stimulus is paying havoc in Asian stocks as they fell apart today and their regional benchmark index was down. This in fact has overshadowed improving China manufacturing data which had earlier boosted Asian stocks this week; however, it does not seem to have any impact now.
The major loser in today’s trading was Sony Corp. which slumped 12 percent in Tokyo.
The company which was expected to fare better has disappointed its investors as it unexpectedly lowered its full-year profit forecast by 40 percent. Similarly, Sydney Airport slumped 3.3 percent as the largest shareholder Macquarie Group Ltd. Decided to give some of its stake to fellow investors.
In the gloomy trading week, some rare performances too have come to front; one of them is Panasonic Corp. whose stocks surged 5 percent on fifth day in row. The company got its performance upped when it doubled its full-year profit forecast. Whereas Japan’s Topix index lost 1.2 percent, Australia’s S&P/ASX 200 Index fell 0.2 percent. Similarly, Singapore’s Straits Times Index declined 0.3 percent.
Facebook, Boeing, Avon Products Inc. Gains
In yesterday’s trading in the U.S. stocks market, Visa Inc. lost 3.5 percent when it failed to meet the expected returns. On the other hand, amidst the news that possible fines related to foreign bribery probes may hurt earnings, Avon Products Inc. fell 22 percent. Some star performances came from Facebook Inc. and Exxon Mobil Corp.
Boeing Co. was also trading better as its stocks advanced 0.6 percent as the company is expected to increase its production to meet the requirements for its 737 jets. However, better performances from select companies did not boost the overall outlook of the market and the S&P 500 dropped 0.4 percent to 1,756.54 at 4 p.m. in New York.
Similarly, the Dow Jones Industrial Average fell 73.01 points, or 0.5 percent, to 15,545.75 and on a not so good trading day more than 7.2 billion shares changed hands on U.S. exchanges which is 21 percent above the three-month average.
To contact the reporter of this story: Jonathan Millet at email@example.com