Asia Stocks Slumped Down Says Wall Street

By Faith Magbanua, October 12, 2018 13:10 PM

Stock Market(Pixabay)

Asian stocks have experienced an all-time low earlier this week as uncertainty regarding the ongoing trade war between the US and China and the increasing interest rates from the US. 

Markets in Asia took their signal from US stocks, which suffered their fatal one-day fall in months on Wednesday.

In addition to that, Japan's benchmark Nikkei 225 dropped 3.9% - on course for its biggest daily drop since March.

On the other hand, the Shanghai Composite fell to lowest since 2014. It was 3.9% lower and the Hang Seng dropped 3.8%.

Higher interest rates make borrowing more expensive, slowing economic activity and hurting investor appetite for risk.

A US-led trade war against China has also made investors worried about the outlook for global growth.

Elsewhere in Asia, South Korea's benchmark Kospi index fell 3.4% and Australia's S&P/ASX 200 index fell 2.4%.

Trump's Trade War

US markets have done better than expected this year, coming back after turmoil early in the year to set new records over the summer.

However, the Federal Reserve is raising interest rates, and more is likely to come.

As of last month, the Fed abandoned its description of its policy as "accommodative", reflecting a view that the economy is strong enough not to need the kind of stimulus it received in the aftermath of the financial crisis.

Asia benefited from low interest rates globally post-crisis, as investors sought to put their money in markets offering higher returns.

The prospect of declining US inducement has been compounded by a trade war between the world's two largest economy - which the IMF has warned could harm growth.

Meanwhile, US President Donald Trump has been predominantly critical of the Fed's rate rises, breaking with tradition in the US where presidents are expected to respect central bank independence.

"The Fed is making a mistake," he told reporters on Wednesday. "I think the Fed has gone crazy."

The stock market fall came ahead of America's corporate earnings season, when companies will provide updates to investors about their outlook for the rest of the year.


Related Article

Must Read

comments powered by Disqus

More from CCD

Five Touching Stories of Christians Committed to Serving Vulnerable Groups

In different places, there are many Christians who, in different ways, are trying to live out the truth of "a kernel of wheat."

Delegation, Including Director General of YAPUN Asia Pacific, Visits Bible Printing Plant

A delegation, including the leader of YAPUN, visited a Bible printing facility in China.

Donations to People Hit Hard by “March 21” Blast

Donations to People Hit Hard by “3.21” Explosion.

Vatican Museum's Collection of Chinese Christian Artifacts on Display in Beijing

An Artifacts display by Chinese Catholic artists in Beijing collected from the Vatican.

Fuzhou Christians Visit Children's Charity Home

Mercy Field Home is a children's charity that was established on June 1, 2000, through donations.

The Irony of the Cross in Macau

The Lisboa Hotel houses within it, at one time, the largest gambling casino in Macau-the Casino Lisboa, which continues to be one of the iconic structures in the city that represents Macau.

Reflection on Cult “New Heaven and Earth” and Situation of Chinese Church

From a cognitive point of view, the falsehood of "New Heaven and Earth" is obvious, but why can such obvious heresy still have such a serious impact on Chinese church?

Shanghai Church Elder, Pastor Win Shanghai Red Cross Humanitarian Award

Elder Wang Jianhua, vice-chairman of the Shanghai Three-Self Patriotic Movement and Rev. He Zhihui, in charge of the English fellowship in Hongqiao, received the "Humanitarian Award" of the Shanghai Red Cross.

Bing Xin's Christian Faith and Real Life

An account of a modern female Chinese Christian writer, her independence, her truthfulness and practice

Commemorating May Fourth Movement's 100th Anniversary: Christians Today Should Talk Less About Doctrine and More About Practical Issues

In Christianity, overemphasizing doctrine and glazing over issues, especially amongst college students who have just embarked on society, is particularly common and can be misleading to many.