Asian Stocks Mixed as Volatility Continues By Investing.com
Investing.com – Asian markets were mixed on Wednesday morning, struggling to raly in the face of continued volatility on Wall Street and buoyed by positive export data from Japan.
In Japan, provisional data released by the Ministry of Finance on Wednesday showed a 1% drop in exports year-on-year, less than the 4.3% predicted by analysts.
The rose 1.83% by 11:30 PM ET (3:30 GMT) whilst neighbouring South Korea’s KOSPI is down by 0.48%.
Hong Kong’s rose 0.79% as markets opened, then shortened the gain to 0.13. China’s flattened to 0.85% after an initial loss of 0.34% and the Shenzhen Component gained 1.10%.
Australia’s reversed its gains yesterday by losing 4.93%.
Stock markets continue to see saw but may find some support from fiscal stimulus being deployed by central banks.
In the U.S., as much as $1 trillion could be pumped into the economy. This could include direct payments to Americans not unlike the HK$10,000 ($1,288) that Hong Kong proposed last month to all permanent residents.
Overnight, the tech heavy led gains and closed up 6.23%, the 30 rose 5.20% increase and the S&P 500 gained 5.39%.
“This is a little bit unlike anything else we’ve had before because of the unknown length and the unknown implications of it,” JJ Kinahan, TD Ameritrade’s chief market strategist, told Bloomberg. “We’ll “continue to see these crazy swings.”
“It’s pretty clear that there is potentially more downside to come,” Henrik Johnsson, Deutsche Bank’s global co-head of capital markets, told Bloomberg. “This has much further to run and we’re only at the beginning of social isolation in Europe and the U.S., and the effects on the real economy are still to be felt.”
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