Asian market decline following US stock market decline

Asian market decline following US stock market decline

After the US stock market showed its worst day since June, the Asian stock market plunged on Friday as investors shook their all-time highs.

The Nikkei 225 NIK,
-1.29%
Hang Seng HSI fell 1%.
-1.48%
It was down 1.3% in Hong Kong. Australia’s S&P/ASX 200 XJO,
-3.08%
Abandoned 2.7% and Shanghai Composite Index SHCOMP.
-1.24%
It fell by 1%. Korea’s KOSPI 180721,
-1.26%
While down 1.6%, Taiwan’s benchmark index is Y9999,
-0.94%
, Singapore STI,
-1.42%
, Malaysia FBMKLCI,
-0.13%
Indonesian JAKIDX,
-1.34%
I refused.

Since the US benchmark S&P 500 gave up its biggest loss in three months at 3.5% and the Nasdaq fell 5%, there has been little to change the market trajectory.

There didn’t seem to be a clear catalyst for the sale, and economic data came out roughly where the market was expecting, and there were no companies giving notice. But the market felt it had to take a break, analysts said.

A lot of money is still being drained through the financial system with the Federal Reserve and many other central banks, and they release huge amounts of cash through bond purchases while keeping interest rates very low.

Stephen Innes of AxiCorp said, “I don’t think it’s a healthy collapse, but getting rid of the short-term speculative bubble will give the Wall of Money a better level because we know the Fed will be going nowhere soon.” Said in the commentary.

Wall Street’s technology share unloading ended Thursday with the Apple AAPL.
-8.00%
Plummeting 8%. Amazon AMZN,
-4.62%
4.6% and Facebook FB loss,
-3.76%
It returned 3.8%.

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Investors believe that these companies will continue to make huge profits as people spend more time online using devices during the pandemic. They also assigned a high market value to a newly found love like Zoom Video Communications because many Americans work remotely and students learn online.

Despite Thursday’s losses, Apple still rose 64.7% and Amazon 82.3% over the year. Zoom’s profit this year is still a whopping 460.4%.

Mark Hackett, Director of Investment Research at Nationwide, said, “There is very little that can justify (these stock’s upward movement) other than feelings of happiness.

These gains are based on the outlook that Congress and the White House will come up with another economic relief package, as well as a “very optimistic assumption” about the virus’s economic impact.

The number of Americans who filed for unemployment benefits fell to 881,000 last week, slightly more than economists expected, but businesses are still sending out a far greater number of workers than they saw in the Great Recession. So, with tens of millions of Americans still unemployed, the job situation is very dark.

Investors will pay close attention on Friday when the Labor Department releases its August job report. Economists surveyed by FactSet predicted that the US economy created 1.4 million jobs in August. This is a decrease from 1.74 million jobs in July.

Dow Jones Industrial Average DJIA,
-2.77%
It fell 2.8% to 28,292.73. For the first time since February a day ago, it exceeded 29,000.

S&P 500 index SPX,
-3.51%
They lost 125.78 points and closed at 3,455.06. Technology-centric Nasdaq COMP,
-4.96%
It fell 598.34 points to 11,458.10.

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US benchmark crude oil CLV20, in energy trading
-0.87%
It gave up 29 cents a barrel for $41,08 in electronic trading on the New York Mercantile Exchange. It was down 14 cents to $41.37 on Thursday. Brent crude oil BRNX20,
-0.72%
The international standard fell 28 cents to $43.79 a barrel.

Dollar USDJPY,
-0.03%
In the second half of Thursday, it fell from 106.18 yen to 106.16 yen.

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