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Asian markets suffer bloodletting on trade, geopolitical fears
HONG KONG, Oct 25, 2018 (BSS/AFP) – Asian markets went into freefall
Thursday, tracking a plunge on Wall Street, with trading floors awash with
negativity on geopolitical concerns and following weak US economic and
earnings data.
The bloodletting is the latest to hit global equities, which have been
pummelled this year by a wave of problems led by the China-US trade war and
rising Federal Reserve interest rates.
On top of those in recent weeks has been a brewing nuclear standoff
between the US and Russia, the killing of a Saudi journalist, Brexit and
Italy’s budget row with the European Union.
US stocks have broadly managed to avoid the hefty selling witnessed
elsewhere — even clocking up a few record highs — thanks to a strong
economy and mostly positive corporate results.
However, New York has finally succumbed as investors contemplate an end to
the decade of cheap credit and the imposition of steep tariffs by the US and
China in their ever-deepening trade row, to which there is no end in sight.
Wednesday say the Dow and the S&P 500 wipe out their gains for the year,
while the Nasdaq dived more than four percent as the under-pressure tech
sector took another beating.
The selling came after data showed US home sales were at their slowest
pace for nearly two years, while the Fed said firms nationwide are worried
about the tariffs as well as labour shortages.
And those losses filtered through to Asia, where Tokyo was scythed 2.2
percent, Shanghai dived almost three percent and Sydney sank 2.1 percent,
also losing its gains for the year.
– ‘Sharks are circling’ –
Hong Kong lost more than two percent, with airline Cathay Pacific
collapsing 6.5 percent after after it admitted to suffering a major data leak
affecting up to 9.4 million passengers.
Seoul shed 2.8 percent as data showed the South Korean economy expanded at
a slower pace than expected in the third quarter.
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Wellington lost 1.2 percent, Manila fell 2.4 percent and Taipei retreated
2.5 percent.
“With the S&P and Nasdaq having been drawn into the global equity
maelstrom, the US bellwethers are no longer the invincible titans that have
held up global market sentiment for what seems like an eternity,” said
Stephen Innes, head of Asia-Pacific trade at OANDA.
“With China-US trade hopes fading as both sides appear to be digging in
for the long haul things could get blustery in a hurry. Indeed the sharks are
circling.”
– Key figures around 0210 GMT –
Tokyo – Nikkei 225: DOWN 2.2 percent at 21,377.20 (close)
Hong Kong – Hang Seng: DOWN 2.3 percent at 24,666.92
Shanghai – Composite: DOWN 1.9 percent at 2,554.36
Euro/dollar: UP at $1.1408 from $1.1393 at 2100 GMT
Pound/dollar: UP at $1.2892 from $1.2884
Dollar/yen: DOWN at 111.90 from 112.19 yen
Oil – West Texas Intermediate: DOWN 57 cents at $66.25 per barrel
Oil – Brent Crude: DOWN 68 cents at $75.49 per barrel
New York – Dow: DOWN 2.4 percent at 24,583.42 (close)
New York – S&P 500: DOWN 3.1 percent at 2,656.10 (close)
New York – Nasdaq: DOWN 4.4 percent at 7,108.40 (close)
London – FTSE 100: UP 0.1 percent at 6,962.98 points (close)
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