Asian Stocks Decline : Asian stocks were about to lose money for the week while the U.S. currency rose. Due to low U.S. inflation, the result was expected. A delayed reaction to a 30-year Treasury auction and a stunning surge in the U.S. budget deficit drove bonds lower. Rising yields made the U.S. dollar soar, especially compared to the yen, stuck due to Japan’s yield control measures. The yen hit a six-week low of 144.89 against the dollar early Friday. These market events occurred on Japan’s public holiday, which lowered numbers and activity. Trade was subdued, with Japanese stock markets closed and Asian Treasuries unchanged.
During this financial tempest, MSCI’s comprehensive measure of Asia-Pacific shares (excluding Japan) fell 0.2%, a 1% weekly decrease. The U.S. Consumer Price Index (CPI), an economic barometer, rose 0.2% last month, the same as the month before. This data showed that core goods inflation declined while rent-related prices were sticking around. San Francisco Fed president Mary Daly discussed the disaster with Yahoo Finance. She was pleased to see advances but urged lawmakers to do more to sustain them.
After the inflation data were released, erratic trade caused the U.S. dollar to gain weekly. While unpredictability is attractive, market participants expected U.S. interest rates will remain vital.
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This week, the long-standing euro fell to $1.0988. Market players interpreted the Bank of Japan’s decision to release its grip on 10-year yields as a planned maneuver to buy time for low rates to stay low. The yen might lose 2% weekly.
Market volatility impacted Chinese property stocks the worst. Country Garden (2007. HK), a primary developer, has issues. The corporation forecasted a $7.6 billion first-half net loss due to financial issues. Country Garden stock fell 11% in one day. The mainland developer measure dropped 2.3% due to this tsunami of gloom.
Alibaba (9988. HK) shares rose 3.8% in Hong Kong. After its strongest quarterly sales in two years, the company rose. The Hang Seng index (HSI) was balanced and moved straight.
European gas prices spiked due to the potential of an Australian gasfield strike, highlighting the intricate dance of commodities. Chevron (CVX.N) and Woodside (WDS.AX), two of the largest firms in respective fields, clashed with workers over wages and working conditions, especially in areas that supply 10% of the world’s liquefied natural gas. Negotiating rooms echoed with words.
Brent crude oil futures ended the week at $86.67 a barrel, giving a sense of confidence. As this weeks Financial Tales Concludes, British GDP data and U.S. consumer confidence data will portray an economic picture.
Our Reader’s Queries
Why is Asian market down?
The Asian markets followed Wall Street’s downward trend today, causing a decline in last year’s gains. The shares dropped, and U.S. futures were also lower. Oil prices remained relatively stable.
What is the Asian stock market doing right now?
The Nikkei Index is currently trading higher at 34,386.79, up by 623.61 points. On the other hand, the Hang Seng Index is trading lower at 16,170.97, down by 19.05 points. Meanwhile, the S&P BSE SENSEX Index remains unchanged at 71,386.21. These are the latest updates from the top Asian markets.
What was the largest stock market decline?
In 1987, the S&P 500 and Dow Jones Industrial Average experienced their largest single-day percentage declines, with the former falling by 20.5 percent and the latter by 22.6 percent. Interestingly, two of the four largest percentage declines for the Dow happened on consecutive days in 1929, specifically on Oct. 28 and 29.
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