Asian Stocks’ Wild Ride: More than $2.5 trillion has been erased from the value of global equities since U.S. Federal Reserve chairman Ben Bernanke’s May 22 warning that its stimulus policy could be “tapered,” and Asian stocks have felt the impact. In Japan, the money printing of Abenomics initially caused the yen to slide and the Nikkei Stock Average to outpace the rest of the world, posting an 80 percent gain since mid-November. But with the Tokyo bourse’s recent retreat along with the rest of Asia, the bears have returned. On Thursday, the benchmark Nikkei lost over 6 percent to close at 12,445, down about 20 percent from its May peak over 15,600 and officially entering bear market territory. The fall was attributed to fears over the Fed’s policy, while analysts claimed a lack of detail in Japanese Prime Minister Shinzo Abe’s “third arrow” structural reforms. The Hong Kong exchange is also in bear territory, with the benchmark Hang Seng Index falling to an eight-month low Thursday on worries over the Fed as well as mainland China’s economy. In China, the benchmark Shanghai Composite Index reached a six-month low Thursday, with analysts concerned that weaker exports and inflation data could indicate a faster slowdown than previously estimated. Singapore shares have also hit a six-month low, with the benchmark Straits Times Index falling below its value at the start of 2013. In South Korea, the benchmark Korea Composite Stock Price Index (KOSPI) fell below 1,900 for the first time since November, with the nation’s central bank keeping its key interest rate steady at 2.5 percent. Australia’s sharemarket has also entered into a “correction” after retracing most of its yearly gains. On Thursday, the benchmark S&P/ASX200 index finished the day’s trading at 4,695, down by more than 10 percent since its May high of 5,220.
Posted on: Mon, 17 Jun 2013 14:55:32 +0000
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