Hong Kong: After yesterday’s sharp fall in the Indian market, which was more extreme than most analysts had anticipated, today may bring no relief.
Markets across the Asia-Pacific region are down at the start, on very weak global cues, as fears of a global economic slowdown are being validated by poor economic data out of Europe, and a Chinese manufacturing economy that is still contracting. Rising oil prices too are a drag on investor sentiment.
As at 7.30 am IST, trading boards across the region are looking red, with Hong Kong faring the worst at the start, down by nearly three quarters of a 1 percent. Tokyo and Shanghai are trading flat, whereas Sydney is down about four-tenths of 1 percent.
Markets across the Asia-Pacific region are down at the start, on very weak global cues.
Nifty futures too are trading flat, but with an undercurrent of bearishness.
Overnight, Wall Street slid back, reflecting a general risk aversion after manufacturing data out of Europe raised concerns that the eurozone was likely tipping back into recession. Yet oil prices edged higher.
Back home, some of yesterday’s selloff is being explained away as profit-booking ahead of the expiry of Futures & Options contracts today. But even that doesn’t adequately explain the sharp fall, and analysts now expect further losses in the short term.
For now, the extraordinary rally since the start of the year appears to have lost a bit of momentum. Investors might just have to batten down the hatches for today.