Asian Equities Index Heads for Six Month Low

Asian stocks fell, with the regional benchmark index heading for a six-month low, extending a rout in global equities after the Standard & Poor’s 500 Index capped its biggest three-day loss since 2011.  The MSCI Asia Pacific Index (MXAP) fell 0.6 percent to 135.60 as of 9:04 a.m. in Tokyo before markets in China and Hong Kong open. The gauge dropped 8.8 percent from its year high in July through yesterday as the Federal Reserve contemplates when to raise interest rates and a faltering recovery in Europe sparked concern global economic growth will slow.

“Pessimism is coming back into the market amid the slump in U.S. equities,” said Nader Naeimi, who helps manage about $125 billion as head of dynamic asset allocation at Sydney-based AMP Capital Investors Ltd. “It’s been a while since we had a gut-shaking correction in the U.S. It will take a while before the market can build a firmer base. There are a lot of worries about global growth.”

Japan’s Topix index tumbled 2 percent after markets reopened from a holiday. South Korea’s Kospi index was little changed. Australia’s S&P/ASX 200 (AS51) Index gained 0.4 percent. New Zealand’s NZX 50 Index lost 0.8 percent.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.