Stock prices in the Asian markets gained on Wednesday following a steep decline in the past session. However, profits were modest since gloomy economic numbers from the US and Europe burdened the overall economic forecast across the world.
Asia-Pacific shares excluding Japan in MSCI increased 0.1% during the early trading session after a 1.6% fall in the previous day, which marked the largest drop in a roughly two-month period. Nikkei in Japan remained flat following a 2.4% drop on Tuesday stock market. However, Wall Street's S&P 500 shed 1.01% on Tuesday since investors pulled off from the market before the announcement of quarterly reports, which is anticipated to record a sharp decline in earnings.
The expanded trade deficit in the US signalling further weak economic numbers in the first quarter impacted the shares in the US stock market. The economic data motivated economic experts to lower their gross domestic product rate forecast to as low as 0.4% on an annualised basis in the first quarter, as reported by THE ECONOMIC TIMES.
FTSEurofirst 300 index of Europe was down 1.9% and stood at its lowest mark since February late, tailed by Germany's DAX that lost 2.6% following a 1.2% decline in factory orders during February. Gloominess in Europe market was fuelled by a statement made by the managing director of International Monetary Fund Christiane Lagarde, who said that growth in the global economy is weak with high-risk factors.
Meanwhile, in the currency market, Japanese yen reached its 17-month peak of 109.92 against the US dollar following Shinzo Abe's comment that nations should not deteriorate their currencies with a random intrusion. The yen previously traded at 110.44.
Oil prices continued to rebound in the commodity market as Kuwait said that major oil producers will halt their production, despite Iran's hesitance to join the output freezing policy. Brent crude was up 1.6% at $38.48 a barrel while US crude rose 2.5% to $36.75 per barrel on Tuesday.
BBC NEWS said that shares in Asia changed slightly on Wednesday trading session as investors turned anxious after deep declines in European and US markets. Hong Kong's Hang Seng index closed up 17.90 points and remained at 20,194.90 while Shanghai Composite in China plunged 6.67 points and stood at 3,046.40.
Japan's benchmark Nikkei 225 was down 0.1% at 15,715.36, marking the seventh consecutive fall. In South Korea, Kospi increased 8.58 points to 1,971.32, while S&P/ASX 200 in Australia rose 21.52 points to 4,945.90 on Wednesday.
According to moneycontrol, Indian markets saw a steep fall on Tuesday, the largest one-day decline since the previous two months. The fall was due to an unpredicted rate reduction of 25 basis points by the Central Bank of India. Nifty and Sensex was down 2% at the close of Tuesday's trading session. Rajan, governor of Reserve Bank, reiterated growth outlook for 2017 at 7.6% and said that the country's inflation rate could edge close to 5% mark.
Stock markets across the world are facing a tough time amid wavering oil prices that put a brake on the growth of energy sector. Investors are shying away from such markets in order to preserve their capital.
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