Share Market: Asian Stocks Drop after US Sharp Fall
SHARE MARKET – On Friday, Asian markets further declined in the morning trade. Further, this followed after Wall Street ended with sharp losses for the past 24 hours.
Meanwhile, there was a continuous pace of drop of Apple-related stocks. This was after the technology company trimmed its quarterly forecast last Wednesday.
Moreover, there was more than 10% decline in the iPhone supplier Taiyo Yuden Co., Ltd. On one hand, TDK Corporation dropped nearly 8%. Japan Display Inc, on the other hand, fell more than 5%.
Trading as Hon Hai Precision Industry, Foxconn Technology Co Ltd hit lower 3%.
“Stock flows are very limited, with many investors choosing to sit and simply wait to see what happens, which is causing mass volatility. Those who are selling are getting rid of Apple-related stocks,” said Masato Futoi of Tokai Tokyo Securities.
The Nikkei 225 of Japan fell as much as 3.9% in the morning trade. This was amid the return of traders from an extended holiday break. The data released on Friday revealed that the Markit/Nikkei Japan Manufacturing Purchasing Managers’ Index made a seasonal adjustment of 52.6 in December.
The Shanghai Composite of China declined 0.7%. Meanwhile, there was a 0.1% drop in Shenzhen Component as of 8:56 PM ET (01:56 GMT). The Hang Seng Index fell 0.5%.
Last December, there was a six month high of 53.9 in the Caixin/Markit services purchasing managers’ index of China. Further, this was higher than the previous month’s record of 53.8 and well above 50.0 marks separating growth from contraction. Dated back in October, it slumped into a 13-month low.
Meanwhile, the United States and China will have another set of trade talks next week, according to Friday’s reports.
Share Market: Australia stocks down; S&P/ASX 200 drops 0.35%
On Friday, Australia stocks dropped at the trade close. This was amid the losses in sectors such as IT, Consumer Staples and Industrials that dragged the shares lower.
The S&P/ASX 200 made 0.25% loss at the Sydney close.
During the session, the best performers were Saracen Mineral Holdings Ltd, St Barbara Ltd, and Healius Ltd. There was an increase of 4.97% or 0.150 points in Saracen Mineral Holdings Ltd to end at 3.170. St Barbara Ltd, on one hand, gained 4.61% or 0.220 points to trade at 4.990 at the close. On the other hand, Healius Ltd increased 4.56% or 0.120 points to 2.750 in late trade.
Meanwhile, the worst performers during the session were Speedcast International Ltd, Automotive Group Holdings Ltd, and Emeco Holdings Ltd.
Based on the Sydney Stock Exchange, the declining stocks surpassed the number of rising ones by 619 to 415 and 286 ended unchanged.
Measuring the implied volatility of S&P/ASX 200 options, the S&P/ASX 200 VIX increased 0.28% to 18.624.