Asian markets take plunges leaving Nikkei to 3-month lows

Asian equities

Equity markets in the Asia-Pacific region were down in its latest session dragging Japan’s Nikkei hitting a 3-month low. The sudden drop was caused by overnight weakness on Wall Street following days of solid gains.

The attack in Barcelona, Spain, that left at least 13 people dead, triggered concerns about terrorism which as well as political uncertainties in the U.S. and simmering political tensions spurred investors to pull their money from riskier assets.

The Trump administration risk hurting the market confidence and business sentiment globally as from what the analysts say.

The Nikkei’s Stock Average was down by almost 0.9% in the early Asian trade. The stock index was pressed further down because of the good performance of the Yen against the dollar, with the Japanese currency also hitting multi week highs against the against the euro and British pound.

In other Asian countries, Hong Kong’s Hang Seng Index was down by 1.2% while Australia’s S&P/ASX 200 was also in down by 0.8% and Korea’s Kospi also lost 0.3%.

While in commodities, oil prices trading flat in Asian trade after prices broke a three-day losing streak overnight in the U.S.

The market remains concerned about the rise in the U.S. production after data from the Energy Information Administration shows that oil production peaked at 9.5 million barrels per day. The data offset the positives from a nearly nine million-barrel decline in the amount of the oil in the U.S. crude oil last week.


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