October 12, 2018 12:33 am
Categorised in: Breaking Financial News
Asia stocks were mixed on Friday morning following another tumble on Wall Street overnight, with the Dow Jones Industrial Average dropping by more than 500 points.
The ASX 200 was trading down by 0.29 percent in morning trade after losing 0.52 percent earlier in the session, as most sectors continued seeing losses. The energy sector was lower by 1.86 percent, while the heavily weighted financial subindex fell by 0.77 percent.
In Japan, the Nikkei 225 slipped by 0.3 percent in early trade while the Topix index fell by 0.42 percent, as most sectors trended lower.
Over in South Korea, however, the Kospi bucked the overall trend of the morning to trade up by 0.33 percent, with heavyweight SK Hynix advancing 2.17 percent.
Overnight on Wall Street, stocks continued to dive for the second straight day. The Dow Jones Industrial Average dropped by 545.91 points to close at 25,052.83, while the S&P 500 fell by 2.1 percent to end the trading day stateside at 2,728.37 — below its 200-day moving average for the first time since April. The Nasdaq Composite also declined by 1.3 percent to close at 7,329.06.
Commenting on the plunge in stocks stateside, U.S. President Donald Trump said on Thursday from the Oval Office: “It’s a correction that I think is caused by the Fed and interest rates.”
Trump said he believes the U.S. central bank’s monetary policy “is far too stringent,” adding that “they’re making a mistake and it’s not right,” and saying he was “not going to fire” Federal Reserve Chairman Jerome Powell.
White House economic advisor Larry Kudlow also told CNBC on Thursday “there’s some movement” toward a meeting between Trump and Chinese President Xi Jinping in Argentina at the G-20 summit in November, though the talks and topics to be addressed by the two leaders have not “been set in concrete.”
At the same time, the most widely watched measure of investor fear jumped again on Thursday. The CBOE Volatility Index, popularly known as the VIX, gained about 8.8 percent to 24.98 — its highest level since the end of March. The VIX measures implied volatility on S&P 500 index options.
The futures market, however, suggested that a recovery could happen in the next trading session stateside. As of 8:13 p.m. ET, the Dow Jones industrial average futures was up by 146 points, indicating a gain of 273.17 points at Friday’s open. S&P 500 and Nasdaq 100 futures also pointed to solid gains to start off Friday’s session.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 95.030 as of 8:14 a.m. HK/SIN, following a slide overnight.
The Japanese yen, widely viewed as a safe haven currency, was at 112.17 against the dollar, while the Australian dollar was at $0.7128 after seeing gains yesterday.
In the oil markets, prices saw gains in the morning of Asian trade. The global benchmark Brent crude futures contract advanced by 0.11 percent at $80.35 per barrel, while the U.S. crude futures contract gained by 0.14 percent to $71.07 per barrel.
— CNBC’s Fred Imbert contributed to this report.