MARKETS: The stock market week started in a gloomy mood in Asia

The stock market week began in Asia with a sharp decline of 1–2 per cent.

The Hong Kong market was closed on Monday, but prices in mainland China were down slightly.

In Japan, the rate of decline was stronger. The Nikkei index was down 2.3 percent and the broader TOPIX index was down 1.6 percent. Taiwan, Korea, Australia and India were down 1% to 2%.

According to recent readings, Chinese exports rose 3.9 percent in dollar terms in April. Growth was the slowest since June 2020. Last week, China’s industrial activity was the weakest since February 2020.

In addition to the weak macro figures in April, the situation for the day was still difficult in China with regard to the pandemic. China’s two largest cities, Shanghai and Beijing, once again tightened containment measures to curb the spread of the pandemic.

The Prime Minister of China Li Keqiang warned that the closure would be felt in the employment situation.

The price of a barrel of oil remained close to $ 110. To offset the supply pressure caused by the Russian war, the cooling of the Chinese economy is weakening demand for oil.

President of Russia Vladimir Putin speaks today at the Victory Day parade, which celebrates the surrender of Nazi Germany. Victory Day has become an increasingly important policy tool in Russia in recent years. This time, the speech closely follows Putin’s comments on Russia’s war of aggression in Ukraine.

Dominoi Dollars

In the foreign exchange market, the dollar continued to strengthen.

The dollar had strengthened 0.4 percent against the euro and yen and 0.6 percent against the pound.

“Interest rates continue to rise in the United States and concerns about global economic growth continue to rise, now especially due to China’s pandemic policy. The dollar is strengthening in this environment because it is seen as a safe haven, ” Australia & New Zealand Banking Groupin strategy Khoon Goh commented to Bloomberg.

The euro received $ 1.0507 and the dollar 131.07 yen.

The price of virtual currency bitcoin hit its lowest level since January, close to $ 33,000. A cryptographic platform interviewed by Reuters Stack Fundsin chief operating officer Matt Dibb linked the price development of bitcoin to the stock market downturn.

“I think cryptocurrencies are treated as a risk-weighted asset class as a whole. Most cryptocurrencies are falling sharply like the Nasdaq, ”says Dibb, referring to the techno-weighted Nasdaq index.

Stock market futures in Europe and the United States were down more than one percent, anticipating a red opening.

By Editor

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