Asian markets fell on Wednesday, with Tokyo leading regional declines with a four percent plunge after comments from Federal Reserve officials sparked jitters over a likely pullback of the US stimulus.
Workers at Tokyo Stock Exchange (TSE) monitor trading.
HONG KONG – Asian markets fell on Wednesday, with Tokyo leading regional declines with a four percent plunge after comments from Federal Reserve officials sparked jitters over a likely pullback of the US stimulus.
Tokyo tumbled 576.12 points to 13,824.94, the biggest drop since mid-June, as the dollar fell sharply against the yen.
Sydney dropped 1.85 percent, or 94.3 points, to 5,011.3; Seoul fell 1.48 percent, or 28.29 points, to 1,878.33, and Hong Kong lost 1.53 percent, or 334.86 points to 21,588.84. Shanghai slipped 0.67 percent, or 13.72 points, to 2,046.78.
US stocks, which hit new records last week, lost ground for a second day Tuesday following indications that the Federal Reserve will begin tapering off its US$85 billion a month quantitative easing programme.
The Dow Jones Industrial Average lost 0.60 percent, or 93.39 points, to 15,518.74, its biggest point and percentage loss since June.
US trade numbers from the Commerce Department showed a narrowing trade deficit in June, which analysts said points to a likely upward revision to the growth estimate for the quarter, and firm growth in the current quarter.
The chiefs of the Federal Reserve’s Chicago and Atlanta branches both said that the central bank could begin tapering the stimulus programme in September, but stressed that economic growth needed to hold steady or improve.
The comments could be an attempt by the Fed to prepare financial markets for a possible rollback of stimulus and ensure that valuations are not inflated, said Matthew Sherwood, head of investment market research at Perpetual Investments in Sydney.
“If they do it next month, the wind-back is going to be modest,” Sherwood told Dow Jones Newswires, adding that the tapering is more likely to happen in 2014.
The growing speculation also sent the dollar sharply lower against the yen.
The greenback was changing hands at 97.10 yen in Asian afternoon trade against 97.76 yen in New York Tuesday afternoon.
The euro bought US$1.3302, nearly flat from New York, but falling to 129.44 yen from 130.10 yen.
On oil markets, New York’s main contract, West Texas Intermediate for delivery in September, was up two cents at US$105.32 a barrel in afternoon Asian trade. Brent North Sea crude for September shed 29 cents to US$107.89.
Gold cost US$1,276.75 at 0900 GMT compared with US$1,293.40 late Tuesday.
In other markets:
— Taipei fell 1.46 percent, or 117.62 points, to 7,921.29.
— Manila was unchanged at 6,420.79.
— Kuala Lumpur was down 0.30 percent, or 5.32 points, at 1,779.32 in half-day trading.
— Singapore climbed 0.16 percent, or 5.02 points, to 3,229.91.
— Jakarta was closed for a public holiday.
— Bangkok edged up 0.04 percent, or 0.60 points, to 1,429.99.
— Mumbai slid 0.36 percent, or 68.16 points, to 18,664.88.
Source AFP
Đăng ký: VietNam News