The nightmare seems still haven’t ended yet, most of the markets in Asia fell sharply on this Monday. Hong Kong - Hang Seng dropped 777.13 points (or 4.00%) to 18664.88, Japan - Nikkei 225 index fell 575.68 (or 3.34%) to 16642.25, U.S. - Dow Jones fell 120.24 (or 120.24) to 12114.10, Taiwan down 285.59 (or 3.74%) to 7344.56, and Singapore - STI fell 96.45 (or 3.13%). Besides, KLCI of Malaysia fell for sixth day to 1110.69, i.e. KLCI had dropped 53.99 (or 4.64%). By the way, KLCI was the market that had dropped worst in terms of percentages i.e. about 4.64%. The following chart shows KLCI’s performance for the latest transaction days.
As you can see from the graph above, KLCI had dropped 162.18 points within 5 transacton days. Analysts said global stocks fall reflect underling concern that the U.S. and Chinese economies will turn weaker. Besides, Japan’s yen expected to continue going high against the dollar in which may caused so called yen “carry trades” and hurt the liquidity of the market. Hence, investors are advised not to enter the stock markets now and should take a wait-and-see stance for the time being.
All in all, the market will need at least one month to see a stock rebound as the investors need time to regain their confidence against their markets.
