Notice: Trying to get property 'display_name' of non-object in /home/theproficientinv/public_html/wp-content/plugins/wordpress-seo/src/presenters/meta-author-presenter.php on line 40
Investor Strategy

Global Free-Fall Hits Asia as U.S. Engine Stalls

imageStock Markets8 hours ago (Mar 12, 2020 11:22PM ET)

(C) Reuters.

By Alex Ho

Investing.com – It was a dismal end to the week for Asian markets, which took more hard hits after US markets tumbled in their worst session since the 1987 “Black Monday” crash.

With details still scarce on a stimulus package proposed by U.S. President Donald Trump and despite the announcement of a US$1.5 trillion injection from the U.S. Federal Reserve, U.S. markets fell almost into the double digits. The Dow Jones Industrial Average closed down 9.99%, the S&P 500 fell 9.51% and the NASDAQ Composite lost 9.43%.

In Asia, Japan’s Nikkei 225 tumbled 9.84% shortly into the morning session and South Korea’s KOSPI was down 8.14% by 9:44 PM ET (1:44 AM GMT). The plunge triggered circuit breakers in both markets soon after they opened. Australia’s ASX 200 tumbled 7.61%.

Hong Kong’s Hang Seng Index lost 7.39%. China’s Shanghai Composite was down 3.37% and the Shenzhen Component was down by 2.31%.

The Fed announced the $1.5 trillion injection into the financial system on Thursday. This will incorporate purchases including bills, notes, Treasury Inflation-Protected Securities and other instruments. It will also begin purchasing coupon-bearing securities until April 13.

The move did not impress Whalen Global Advisors founder Christopher Whalen, who told CNBC the “virus [COVID-19] was the catalyst but it’s not the cause.”

“Both bonds and equities were inflated rather dramatically by our friends at the Fed. You’re seeing the end game for monetary policy here, which is at a certain point you have to stop. Otherwise you get grotesque asset bubbles like we saw, and the engine just runs out of fuel.”

“Markets remain in a free-fall as uncertainty persists without a reliable anchor which can create near-term stability,” Ben Emons, managing director of global macro strategy at Medley Global Advisors, told Bloomberg.

The COVID-19 novel coronavirus pandemic continues to spread. The WHO reported 125,288 cases and 4,614 deaths as of March 12.

Global Free-Fall Hits Asia as U.S. Engine Stalls

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

Your daily news source covering investing ideas, market stocks, business, retirement tips from Wall St. to Silicon Valley.

Disclaimer:

TheProficientInvestor.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 TheProficientInvestor. All Rights Reserved.

To Top