Asian markets tumble as geopolitical fears set in
HONG KONG: Asian markets plunged on Tuesday as geopolitical risks pile up, from US tensions with Russia and Saudi Arabia, to trade
with the European Union.
Hong Kong lost more than three percent to wipe out its gains from the previous two trading days, while Shanghai and Tokyo were more than two percent off.
The losses brought an end to a rally that was fuelled by
- nated statements of support for
unveiling tax cut plans.
The advances had provided some much- needed support to Asia but investors reverted to selling on Tuesday, with nerves tested
warning that he will pull out of a nuclear treaty with Russia and
- tinue to struggle to rally as various geopolitical concerns weigh on investor confidence,” said Nick
Rakuten Securities Australia.
He added that with regards to China, dealers “will be very keen to see if they can maintain the
over the last couple of days.”
“With the rest of the world looking much more pessimistic in the current environment there could debt mountain.
“Stocks in the past two days were like a patient, just coming out of the ICU and going straight to the nightclub — the symptoms may have temporarily gone away,
only a matter of time before medicine starts to wear off,” he told Bloomberg News.
“I still abide by the belief that there will be no bull market in a deleveraging process.”
Italy, Brexit on radar
Tokyo plunged 2.7 percent, Sydney lost more than one percent and Singapore fell 1.3 percent. Seoul dived 2.6 percent, Wellington lost 1.5 percent and Taipei was two percent off.
There were also steep losses in Manila, Mumbai and Jakarta.
Asia was given a tepid lead from Wall Street, where traders are turn-
midterm elections, which could turn control of Congress over to the Democrats.
With the polls in mind, Trump has been on a tour of the country, ramping up his nationalist rhetoric. On Monday he said he is ready
- piles after announcing he will pull the nation out of a decades-old agreement with Moscow.
There is also growing unease