🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

GLOBAL MARKETS-Asia facing sharp falls after Wall St rout

Published 25/10/2018, 09:24 am
© Reuters.  GLOBAL MARKETS-Asia facing sharp falls after Wall St rout
EUR/USD
-
USD/JPY
-
US500
-
DJI
-
JP225
-
CAT
-
MMM
-
LCO
-
CL
-
JP225
-
IXIC
-
US10YT=X
-
MIAPJ0000PUS
-
DXY
-

* Asian stock markets : https://tmsnrt.rs/2zpUAr4

* Nikkei futures point to opening drop around 600 points

* Wall St suffers worst one-day fall since 2011

* Chip stocks hammered amid earnings, economic worries

* Bonds rally on safety bid, US dollar and yen in demand

By Wayne Cole

SYDNEY, Oct 25 (Reuters) - Asian share markets face a rough ride on Thursday after a tumble in technology stocks inflicted the largest daily decline on Wall Street since 2011, wiping out all its gains for the year.

Nikkei futures JNIc1 were down 2.7 percent and pointing to opening losses of around 600 points for the cash index .N225 . MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS seemed certain to start at its lowest since March last year.

The dive in formerly high-flying tech stocks sent investors scampering to the safety of sovereign bonds, with yields in 10-year Treasuries US10YT=RR falling the most since May to 3.11 percent.

"Concerns that earnings growth may be peaking against an unsettled global backdrop and that fiscal stimulus will wane continued to weigh on sentiment," said analysts at ANZ in a note.

Global worries included the growing international pressure on Saudi Arabia over the death of Jamal Khashoggi. to the air of tension police intercepted suspected bombs mailed to former U.S. President Barack Obama, Hillary Clinton and other high-profile Democrats, as well as to CNN, in what New York officials branded an act of terrorism. readings on manufacturing in Europe added to angst over world growth, as did a surprise slump in U.S. home sales which suggested rising mortgage rates were sapping demand for housing. Wall Street, disappointing forecasts from chipmakers hammered the tech sector. They followed disappointing forecasts on Tuesday from industrial giants Caterpillar (NYSE:CAT) CAT.N and 3M (NYSE:MMM) MMM.N . Nasdaq .IXIC closed down 12.4 percent from its Aug. 29 record closing high, falling 4.4 percent for the day in its biggest one-day percentage decline since Aug. 18, 2011.

The Dow fell 2.41 percent and the S&P 500 .SPX lost 3.09 percent.

In currency markets, funds flowed to the U.S. dollar and Treasuries and out of the euro and the British pound.

The euro shed 0.7 percent to $1.1397 EUR= and breached a major chart bulwark at $1.1430. Against a basket of currencies, the dollar climbed to a nine-week peak and was last trading at 96.370 .DXY . USD/

Sterling hit a seven-week trough $1.2865 GBP= , having dropped 0.8 percent overnight.

The yen got the usual safe-haven bid, with the euro skidding to a two-month low at 127.68 yen EURJPY= . Even the dollar eased to 112.08 yen JPY= .

Oil prices eased amid all the concerns over global growth.

Brent crude LCOc1 fell 76 cents to $75.68 a barrel, while U.S. crude dropped 40 cents to $66.42 CLc1 . O/R

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets

https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations

https://tmsnrt.rs/2Dr2BQA

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.