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Overnight Markets: US stocks plummet to close in correction territory

Asian equities follow with China’s Shanghai Composite Index trading nearly 4% down in early morning session on Friday.

 

In Asia, share markets plunged on Friday in morning session following Wall Street that closed in a correction territory for the first time in two years.

Japan’s Nikkei Stock Average led the declines, skidding 2.64%. Indexes in Australia and New Zealand each fell 1.08%. South Korea’s Kospi was down 1.61% in early trading. Singapore’s Straits Times Index declined 1.59%.

In Hong Kong, the Hang Seng Index plunged 3.56%, while on the mainland, the Shanghai Composite Index was trading 4.10% lower.

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3 comments so far. Why not have your say?

alan franklin

Feb 09, 2018 at 07:22

As bubbles start to burst and easy credit dries up, QE goes into reverse and the over-borrowed everywhere are hit with rising interest rates, the only thing to buy is the one asset that stands the test of time. Gold.

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horshamtim

Feb 09, 2018 at 07:41

@alan franklin Unfortunately no - if only it was that easy. Apart from the fact that having a large gold exposure over the years has not been a way to get rich - in real terms it has not stood the test of time. At this moment the gold price is also down on the week. Absolutely no indication that people are stampeding into it. It earns you no dividends, and as it is priced in dollars, the movements here are often as much about the exchange rate as the intrinsic price. Holding physical gold ETFs (and for other precious metals) can be sensible as a stabiliser to a portfolio, but personally I wouldn't go much further than that. There is a real possibility this time round that the prices of all assets will fall together as QE unwinds - no one really knows as we are in uncharted territory.

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Andy Cap

Feb 09, 2018 at 09:35

Well as usual I shall just sit back and wait for the dust to settle, then carry on earning a good rate on a small range of quality Investment Trusts, managed by good solid Managers who aren't popping up every five minutes telling us where markets are going.

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