The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
Asian equity markets demonstrate multiple directions
On Thursday, stock indexes of the Asia-Pacific region are changing without a common dynamics in the course of trading. It’s because investors are evaluating the statistics from South Korea as well as the reporting of large companies, including such giants as Samsung Electronics.
In addition, the market reacts to the ongoing surge in yields of US government bonds. On Tuesday, the revenue of 10-year US Treasuries surpassed 3% for the first time since 2014, and on Wednesday it reached the level of about 3,026%.
The Japanese Nikkei 225 index rallied 0.52% during the trading session, while the wider Topix managed to acquire 0.29%.
A positive factor for the Japanese stock market was the dive of the Japanese yen against the evergreen buck on Wednesday by about 0.6% to 109.43 yen. The weakening of the national currency turns to be beneficial for the country's exporters.
In Hong Kong the Hang Seng dived 0.84%, the Chinese Shanghai Composite sank 0.94%. As for the Australian S&P/ASX 200, it went down 0.16%.
South Korean KOSPI tacked on by 1.2%.
As reported, South Korea's GDP in the first quarter rallied by 1.1% compared to the previous three months and also by 2.8% in annual terms. Experts on average expected the growth of the South Korean economy by 1.1% in quarterly terms and also by 2.9% in annual terms. Positive impact on this Asian country’s economy was exerted by the growth of exports, which accounts for nearly half of the country's GDP. Deliveries abroad in January-March managed to surge by 4.4% quarter-on-quarter having gone down by about 5.3% in the previous three months.
Capitalization of Samsung Electronics jumped by about 3.1%. The company updated the record of operating revenues for the fourth quarter in a row, so the outcome accounted for 15.64 trillion won.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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