Asian Stocks Hit the Longest Decline in 16 Years
Bloomberg News reported that Asian stocks faced the longest decline in 16 years. MSCI’s Asia Pacific Index fell for the 10th consecutive day on Wednesday, the first time since 2002; the index measures 14 major players in the Asia Pacific region.
The performance of large-cap stocks in the national stock market has recently fallen by nearly 5%, which has caused its market value to have evaporated by nearly 700 billion US dollars this year (about 21.6 trillion US dollars). Investors’ concerns include at least trade wars, strong US dollar, emerging markets and turbulent stocks. And China’s growth slowdown and other four factors.
Asian stocks generally fell on Wednesday. Japan’s East China Index fell 0.5%, and South Korea and Taiwan’s stock markets also closed. Hong Kong’s Hang Seng Index fell 20% from its high point this year and fell into a bear market (short market). China’s Shanghai Composite Index closed down to its lowest point in 2014 at 2656.11 points. This highlights investors’ continued selling of Chinese and Hong Kong stocks to the Chinese government. Calls to boost market sentiment are not bought.
Beijing borrowed a speech from the Chinese Academy of Social Sciences on the 11th “Blue Book of Listed Companies“, saying that the valuation of A shares has dropped to a historically low level, and the stable operation of listed companies and the value of investment have emerged.
Nader Naeimi, head of dynamic market for security capital investment (AMP), said, “Asian stocks have been caught between trade tensions, dollar appreciation and the turmoil in emerging markets. The weak performance of the Chinese market is certainly fueling.”
Ken Peng, an investment strategist at Citi Private Bank, said that a series of events from Turkey and Argentina have spread to economies that are more vulnerable to external shocks, such as Indonesia and the Philippines; both Southeast Asian countries have “double deficits” (both current accounts and fiscal deficits). ), relatively high and rising inflation rates, and foreign exchange reserves are declining.”
Michael McCarthy, chief market strategist at CMC Markets in Sydney, pointed out that investors’ “clear concerns” in the short term are trade tensions. It is unlikely that signs of tension will be eliminated in the current environment. People are worried about the US’s additional 200 billion US dollars in products. With the addition of tariffs, the US mid-term reelection on November 6 became the key, and trade tensions may subsequently dissipate.
Morgan Stanley manager Jonathan Garner pointed out that we maintain a bearish stance on Asian stocks and emerging stock markets, and we expect to further reduce the profit estimates of consensus views in the coming months on the grounds that “China’s growth slows down and becomes credit.” The consequences of austerity, and the demand for cars and technology hardware will decline.
In addition, Paul Spring, the investment chief of Eastspring, believes that the Asian stock market is mainly due to the continued strength of the US dollar against emerging currencies. He expects that funds will continue to flow out of emerging markets after the Fed continues to raise interest rates.