Asia followed the collapse of Wall Street
Asian markets recorded a decline following the decline of Wall Street, mostly because of concerns about the state of the U.S. banking sector. Sales in the region increased, and banks, consumer goods manufacturers and exporters reported a serious decline. Investors drew aside from risky assets after the decline in U.S. market and rumors of problems in the financial sector and economy as a whole. After a 6-month increase in the market began to retreat because of worries that economic growth will not cover them.
The overall index for the region MSCI Asia Pacific Index fell 1.6 percent to 112, which is the lowest value for the last 2 weeks. Because speculation about the recovery of world economy, the index surged by 59 percent since March.
People are worried now. Drew much money in the markets, observers said a Standard & Poor’s to Asia. The question now for most investors is whether to put the current levels or wait to be adjusted further because there is still uncertainty about the recovery of U.S. economy, they added.
Chinese main Shanghai Composite Index recorded a loss of 0.2 percent after the country’s Prime Minister Wen Dzhibao said the government would change its monetary policy. Financial companies reported growth in China after Dzhibao Wen’s statement that the country will tighten its fiscal policy. The country’s economy is in „critical phase“ of his recovery and the government will maintain its pro-active financial policy, Xinhua news agency said, citing the Chinese premier.
The Japanese Nikkei 225 index reported a fall of 2.5% to 10 263 points. Among the company has lost production of chips for Elpida Memory, which reported a decline in its shares by 17% after announced a plan to sell more of its shares worth 800 million USD. The index of Hong Kong’s Hang Seng fell 1.6% to 19 564 points, that South Korea’s Kospi was down by 0.4% to 1 613 points, while the Indian Sensex lost 0.1 percent of its value and the level of 15 572 points.
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Finance