Not Only U.S. Stocks are Sold, Southeast Asian Stocks are Also Under Heavy Selling Pressure
Production Editor: Hülya Karahan
As the Covid 19 epidemic continues to spread globally and the continues tide of U.S. stocks selling, it is causing the S & P 500 to face the fastest correction in history. One of the victims.
The plunge in U.S. stocks this week pushed Thailand, Indonesia, the Philippines, and other Southeast Asian countries’ benchmark stock indexes to rank among the world ’s worst performing major markets. Panic selling caused the MSCI emerging market ASEAN index to fall by more than 17% from its July high.
According to market analysis, as Southeast Asian countries generally rely heavily on China‘s trade and tourism, this means that the damage caused by the epidemic will be even more harmful to these economies.
Malaysia’s KLCI index and Thailand’s SET index have entered a bear market this week, Indonesia’s JCI index and Philippines’ PSE index have fallen by about 19% from their previous highs, Singapore’s STI index has fallen by 17% from its peak in May 2018, and Vietnam’s VNI index has fallen by two The previous year’s high was down 27%.
Among them, Thailand is one of the countries in Southeast Asia that has been hit hardest by the plunge of Chinese tourists. Singapore has also previously warned that the number of tourists will fall by 25% -30% this year. These countries are facing downward pressure on their economic expectations, which has led policymakers to take supportive measures. To alleviate the impact of the epidemic, the Indonesian government announced this week a US $ 742 million fiscal stimulus policy to inject capital into the tourism, aviation, and real estate industries that have been hit hard by the epidemic, thereby boosting domestic economic growth.
U.S. Stocks, Asian Stocks are Also Under Heavy selling - /10
As theCorona 19 epidemic in continues to spread globally and the continued tide of U.S. stocks selling, it is causing the S & P 500 to face the fastest correction in history. One of the victims.