When you thought the stock rally of past seven trading sessions signifies the good time once again, stock indices fell today across almost all markets in Asia and Australia.
Hang Seng was down 1.88%; Nikkei was down 1.37%; Shanghai Composite was down 2.37%; Korea Kospi was down 1.19%; Australia All Ordinaries was down 0.93%.
Singapore’s Straits Times Index (STI) is currently down 1.55% at 2,932 points (at 4.47 pm).
The earlier confidence shown by investors was shattered by poor economic news of US, Eurozone countries, Japan and China. The current economic problems were a concern for most countries. China’s People’s Bank of China (PBOC) and European Central Bank (ECB) had started expansionary monetary policies to prop up their slowing economies. Both had reduced benchmark interest rates (discount rates) over the weekend. They knew the conditions of their economies to take these actions. Investors should take heed that the global economy for 2012 will be worst off compared to 2011. Caution against over exuberance in equity investment is advised.
Copyright © 2012, limkimtong for Living Investment
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