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Home > News and Opinion > Asian Stocks Show Mixed Sentiment After Weekend

Asian Stocks Show Mixed Sentiment After Weekend

George Sterling | Monday, September 17th, 2012

Majority of the stocks in Asia rose as the market opened on Monday. After the market opened, it was revealed that most of the mining companies reported increases in values.

Looking at the market pattern and reported values, majority of the stocks outside of China and Japan were the ones that reported higher values. The overall market however showed mixed sentiment amidst increasing speculation that the United States move of quantitative easing will lead to an increase in world demand.

Amongst the companies that reported increased values on Monday included BHP Billiton Ltd. which is the biggest mining company in the world. BHP reported an increase of 2.5 percent, as increasing prices of metals provided a stimulus for raw material companies.

On the other hand, a 0.2 percent increase was also reported by The MSCI Asia Pacific Excluding Japan Index, which rose to 442.41 in Hong Kong at 6:46 pm. However, the overall sentiment in Asia remained mixed as many also reported decline in values.

For the most part, shares in Hong Kong and Shanghai dropped after Citigroup Inc. revealed its growth outlook prediction for China. Citigroup Inc. cut back on China’s growth outlook for the next year which led to drop in share values in China and Japan.

Most of the Chinese shares dropped after Citigroup’s revelation of China’s economic outlook for the next year. On the other hand, in Japan, equity markets remained closed due to a public holiday. In China, few automobile sellers also reported declines as over the weekend, protestors’ anti-Japan campaign turned aggressive.

Citigroup Inc. is against the United States’ Federal Reserve’s move of quantitative easing as according to the group’s chief economist, the easing actions by the US Federal Reserve will affect China negatively at the very core.

After the weekend ended and the markets opened on Monday, most of the gains were reported by energy and material manufacturers in Asia. The S&P/ASX 200 index of Australia increased by 0.3 percent while the Kospi index dropped by 0.3 percent in South Korea. Samsung’s market value also dropped as its shares receded by 1.6 percent.

Additionally, the Shanghai Composite Index declined by 2.1 percent whereas the Hang Seng Index of Hong Kong increased by 0.1 percent following a drop of 0.2 percent.

Through September 14, Asian benchmark has jumped by 12 percent, while S&P 500 has also jumped by 17 percent. Moreover, amid speculations regarding Central Banks and their moves to increase measures to support economic growth, the Stoxx Europe 600 Index has also jumped by 14 percent.

In a nutshell, most of the fluctuations in the Asian stock market today were due to U.S’s possible move of providing stimulus to boost global demand and some local factors such as anti-Japan protests in China.

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