More

    Stocks striked as oil price crash adds to coronavirus fears

    Must Read

    India registers biggest single-day spike of 7,466 COVID-19 cases

    The death toll due to COVID-19 rose to 4,706 in the country, while the number of cases...

    Appeal from Ministry of Railways to passengers

    Indian Railways has been running Shramik special Trains on a daily basis throughout the country to ensure...

    WR’s mission food distribution also got successful in Shramik special trains

    In the wake of the  lockdown Western Railway's staff from various departments displayed grit and commitment through...

    Stock markets plunged around Asia on Monday, as panic selling set in with traders fretting over the economic impact of the new coronavirus and digesting a free-fall in the oil price.

    By mid-morning, the benchmark Nikkei 225 index had dropped 5.10% or 1,058.06 points to 19,691.69, while the broader Topix index was off 5.01% or 73.69 points to 1,397.77.

    Other markets in the region were also suffering with Hong Kong stocks down 3.8 percent at the open, Australia off more than five percent and equities in New Zealand and South Korea both down by just under three percent.

    In China, the benchmark Shanghai Composite Index dived 1.56 percent while the benchmark Philippine stock exchange index opened down nearly four percent.

    Driving the declines was a ferocious sell-off in the oil markets sparked by top exporter Saudi Arabia slashing prices — in some cases to unprecedented levels — after a bust-up with Russia over oil production.

    The two main oil contracts were both down about 20 percent in morning Asian trade, with West Texas Intermediate sliding to around $32 a barrel and Brent crude to $36 a barrel.

    The foreign exchange markets were also extremely volatile, with traders snapping up the yen, seen as a hedge against global instability and selling off the dollar amid uncertainty over coronavirus in the United States.

    A stronger yen tends to push down Japanese stocks, and exporters from the world’s third-top economy were especially hard-hit, with Nissan and Sony down more than five percent and Toyota down 3.60 percent.

    Banks also plunged, with Sumitomo Mitsui Financial trading down nearly four percent and Mitsubishi UFJ Financial off by almost five percent.

    Stephen Innes, chief market strategist at AxiCo, said the markets were suffering from a perfect storm of factors.

    The dollar fetched 104.15 yen in early Tokyo time, after dipping to around 103.83 yen in Sydney time, the lowest level since November 2016. That compares with 105.40 yen in New York late Friday.

    Markets were not helped by data showing that the Japanese economy had declined more than initially thought — even before the outbreak of the coronavirus.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Latest News

    India registers biggest single-day spike of 7,466 COVID-19 cases

    The death toll due to COVID-19 rose to 4,706 in the country, while the number of cases...

    Appeal from Ministry of Railways to passengers

    Indian Railways has been running Shramik special Trains on a daily basis throughout the country to ensure that migrants can travel back...

    WR’s mission food distribution also got successful in Shramik special trains

    In the wake of the  lockdown Western Railway's staff from various departments displayed grit and commitment through their exemplary services. Not only...

    HM Amit Shah speaks to all Chief Ministers, seeks their views on future strategy in fight against Covid 19

    Home Minister Amit Shah spoke to all Chief Ministers on Thursday regarding the COVID-19 situation in states and union territories.

    29 May – Know your today’s horoscope

    Aries: Do not waste your time in criticizing others as it may affect your health. Due to any member of your family...

    More Articles Like This

    - Advertisement -