Asian markets collapse, fears of the end of the Fed's stimulus
Tokyo (AsiaNews / Agencies) - Asian markets have dived again after a short period of relative growth that lasted about two weeks: ahead of the next meeting of the board of the Federal Reserve - which could cut the stimulus package of bond purchases to boost equity in the economy - market operators are taking a step back.
Tokyo Stock
Exchange has lost most, more than six points under the weight of the super yen that
penalizes Japanese exports and raises fears for the end of the stimulus
policies of the Bank of Japan (BOJ). The Nikkei closed at -6.35%, reaching
12,445.38, after it had reached the
maximum above 15,600 last month. The Topix index also collapsed by 4.78% and
now stands at 1044.17.
The currency market is faring no better, the euro fell to an eight week minimum
against the yen (125.85) and the dollar to an even worse 10 week minimum
(94.18). This is also partially due to the monetary policies of the Land of the
Rising Sun also, which continues to hold down the yen to calm energy costs and
maintain industrial production at acceptable levels.
There have been substantial
losses even in Hong Kong (-2.70%) and Shanghai (-3.08%), while Seoul has limited
damage, ceding "only" 1.25%. Even
the stock exchanges of emerging countries have suffered losses, with a 4% drop
in Manila, Bangkok 4.60% and Jakarta registering 1.54%. Wall Street closed last night
with a loss of 0.84%, in the red for the third consecutive session.
Market volatility has therefore returned to the levels of last May 22, when Ben
Bernanke - Fed governor - for the first time spoke of the possibility of a
revision of the Federal Reserve's stimulus program if the labor market had
recovered. Investors are today watching the figure for unemployment benefits in
the United States, hoping to draw some indication on the next moves of the U.S.
central bank. All eyes are now on the meetings of 18 and 19 June next, which
may signal a change in US economic policy.
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17/12/2015
