The Asian markets saw a downgrade yesterday due to the unrest in Hong Kong and a slump in peso, the Argentian currency. The latest development has only added to the foes of the troubled equity investors. The trade war between the United States and China has had its effect on stock markets globally.
The unfavourable developments have made the investors move their investments to safe havens such as gold and bonds. The Indian stock markets fell over 1.7% yesterday. The benchmark indices BSE Sensex and NSE Nifty fell by 623.75 183.80 points respectively.
The Hong Kong markets crashed yesterday as the pro-democratic rebels brought the city’s airport operations to a halt. Argentina faces massive chaos as primary elections saw voters discarding President Mauricio Macri. This led to a significant slump in the Argentian markets and currency.
The Hong Kong International Airport, which also happens to be the world’s busiest cargo airport, resumed its operations yesterday and this could lead to some positive developments in the stock markets globally. Hong Kong is seeing massive protests for the last two months.
The protests started in defiance to a bill which allows extraditions to mainland China. The remonstrance has turned out to be a significant test to the Chinese authorities since they managed to regain the Hong Kong from the British back in 1997 and the Chinese Government is trying its best to stamp its authority over the metropolis since then.
The unrest in Hong Kong has significantly impacted Asian stock markets. The Chinese stock markets saw a fall of 0.8%. Nikkei, a Japanese index, fell by 1.5% while the Singaporean stocks crashed 1.1%. Singaporean indices are considered as a global bellwether for growth as the city is a significant trade centre.
The Asian stockbrokers are now worried about the trade tension between the United States and China. Yuan saw a sharp fall last week and wreaked havoc in the emerging markets such as India, Thailand, and Indonesia. The latest developments in Hong Kong and Argentina has only added to the investors’ concerns.
Engineer by qualification, financial writer by choice. I am always open to learning new things.