Monday, November 16, 2015

Asian stocks dive as Paris terror hits sentiment

FXStreet (Mumbai) - Stocks on the Asian stocks are seen trading with sizeable losses, witnessing a bearish opening gap, although lack of follow through is seen. The investor sentiment was badly hit by the Paris terror attack by Islamic terrorists that occurred post-Friday’s NY close. While the Asian indices also tracked the negative lead from the Wall Street and remained in the red, kick-starting the week on a weaker note.

Asian stocks weighed down by Paris atrocities

The Japanese stocks faced double whammy in today’s trading so far, with markets assessing the drop in the Japanese GDP figures on one hand, while persisting risk-aversion on the back of Paris terror event also continues to weigh. The Japanese economy dived deeper in contraction, falling -0.2% over the quarter, against forecast of a 0.1% drop.

The exporters’ stocks were negatively impacted on stronger yen amid increased safe-haven bids. USD/JPY extends recovery from 122.23 lows and now trades -0.11% lower at 122.46. Meanwhile, the Nikkei drops nearly -1% to 19,407.

The Australian benchmark, the S&P/ASX also follows suit and declines -0.81% to 5,010, as sharp losses in the heavily-weighted banking and retail stocks dragged the index lower. However, offering some respite to the miners, gold prices extend higher in Asia amid widespread risk-aversion.

While the Chinese indices trade notably lower, despite markets speculating further easing measures by China after the recent streak of weak economic data. Hong Kong’s Hang Seng trades -1.61% lower at 22,038 while China’s A50 index drops -0.38% to 10,573.
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