Asian Markets in the Red – Energy Price Weighs Heavy
Stocks across Asia, with the exception of the SHCOMP in China, traded down today as the price of energy and concerns about the global economy weighed heavy on investors minds.
After energy giant BP reported its biggest loss in 20 years yesterday, European stocks slid to finish down across the board. Today, most Asian stocks followed.
The Nikkei saw 108 points (-0.61%) wiped off the gains it has received in the past few days of trade. Banks led the declines with MFG (TYO:8411) declining 5.6% while SMFG (TYO:8316) declined 8.2% and MUFG (TYO8306) declined 5.09%. Japanese banks have been feeling the pinch since the BoJ implemented a negative interest rate policy on deposits last week.
The HSI in Hong Kong was down 140 points (-0.8%) close to the final bell, with China Construction Bank (939) down 3.1% and PetroChina (857), the indexes leading energy firm, down 3.7%.
In India the SENSEX declined 1.4% on the open, declining 149 points with energy giants Oil & Natural Gas Corporation (ONGC) and ICICI Bank (ICICIBC) both declining more than 3%. This continues the trend seen across Asia today, with energy firms and the banks exposed to them taking the brunt of the losses.
Towards the end of the session the SHCOMP was trading marginally up 2.41%, despite weak manufacturing data from China earlier this week
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