For the past few weeks, the US investors expressed concern because of the gradual decline of the US Stock market index. The decline of the US stock index was associated with various contributing factors like the republican Tax Bill and Budget Cut, among others. Whenever the US stock market starts to decline, it seems to create a domino or ripple effect because it also affects the world’s stock market and trade – especially the Asian stock market where most of its investors and businesses rely heavily on the United States.
However, it seems that for the past few days, the US stock market has slowly recovered and on Monday, the US stock market closed to a higher rate and along with it, the Asian stock markets surged.
Asian Markets Closed to a Higher Rate Index Following the Rebound of Wall Street
Asian Markets Rebound After Last Week’s Declining Performance
Because of the rebound, the US Stock markets have experienced at the beginning of this week, the Asian markets have also surged and recovered. In fact, the Asian market is now displaying strong index rate for the past few days after a week of steady decline.
South Korea’s Kospi had closed at 2,385.38 points, up by 0.91 percent and was among the highest stock index in the market. Aside from Kospi, the technology company Samsung Electronics also rebounded up to 2.28 percent while the SK Hynix, on the other hand, gained around 1.5 percent at the end of the day. Suffice to say that technology companies had dominated the stock market this week. The financial market also hailed as the top 2 trade last Monday.
The Chinese Stock Market is also heading in a positive territory.
The Hang Seng Index of Hong Kong increased up to 0.52 percent while its financial firms finished at the middle and at a balanced rate, with some firms increasing their stock index while other firms were down last Monday.
The AIA Insurance firm, on the other hand, increased its index rate up to 1.94 percent, greatly contributing to the 42 points increase of Hang Seng’s overall gained index. In the mainland Shanghai, on the other hand, had slightly plummeted down by 0.76 percent while it closed at 3,153.56.
Asian Markets Surged At the Beginning of this Week
While the Shenzhen composite index surged up to 2.65 percent at 1,723.73. The real estate also gained more than 2 percent on their index. The Singapore Stock Market fell by more than 6 percent though because of India’s statement that they would three of its SEC companies will stop licensing their indices.
They would also stop gaining market data as well as foreign exchanges. This movement from Indian stocks affected the Singaporean stock index rate this week. The SGX also released a statement saying that they will work hard with National Stock Exchange of India to address the issue and come up with a solution soon.
The Australian Market, on the other hand, is still suffering from Major Plummet in Stock Market
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Meanwhile, in Australia, their stock market was still recovering from the downs and setbacks it experienced for the past few days. The S&P/ASX 200 was down to only 0.3 percent as it closed at 5,820.70 last Monday. Its energy stocks also declined down to 0.43 percent because of the high exchange rate which prompts the oil prices to increase its price.
Aside from that, its Gold production demand was also weak. The Newcrest Mining was down with percent while the Evolution Mining was down to 2.15 percent. Some Australian retailers also underperformed for this week.
There is Still Much Hope for Recovery With US Stock Market Moving Forward
Even if there’s a significant area in the Asian market which is still suffering from the decline, the Asian markets see this as an opportunity to buy more shares. It’s because they have confidence that the Asian market will boost up because the US Stock Market rebound at the beginning of the week at 1.18 percent.
Aside from that, the dollar exchange index edged down at 90.151 from 90.346 last Friday. The corrections of US Stock Markets as well as its exchange rates will also help the Asian market to recover and come back.
