The Nikeki region of Japan (N225) shut down 0.5% while Kospi (KOSPI) of South Korea dropped by 2%.
After an intensive day of protest in the Asian financial hub, Hong Kong’s Hang Seng (HSI) fell by 0.2 percent. On Tuesday it was the 70th year since the People’s Republic of China was established and demonstrators challenged with police and residents in several districts. The market was closed.
In a Wednesday study note, Robert Carnell, Chief Economist and Asia Pacific Research Officer at ING, said that he looked at these developments in an increasing sense of desperation. His private feeling is that these protests have a great financial problem as a political one.
After the market close, Hong Kong also recorded dysfunctional retail numbers. Total retail sales in August decreased by more than 25 percent as opposed to a year ago, reflecting price adjustments.
According to a public spokesman, the year after year decrease is the steepest for one single month. The downturn reflected serious turnover and consumer activity disruptions triggered by the demonstrations.
The Shanghai Composite Index (SHCOMP) is still closed on vacations in China.
The losses of Wednesday followed a poor day for US stocks. Tuesday after a major financial study showed that US factory activity was amazingly weak, the Dow (INDU) dropped by almost 350 points.
Since June 2009, the last month of the recession, the ISM manufacturing index has fallen to its smallest point. The US-China trade war, according to the ISM, was quoted by producers as weighting demand and making products more costly. The information only stimulates long-standing concerns that globally, as Alec Young, FTSE Russell’s worldwide market research director says, will be slowing down worldwide development.
However, Halley has observed that product information in other countries, including emerging Asian markets, have not been as rocky. Halley believed that if they do so in such a toxic global trade climate, imagine how they can achieve a breakthrough in the coming weeks.
It’s too early to say that the USA will dry up on the vines. Other economists at ING also observed that Asia stays on the front lines of the brunt worldwide downturn with higher dependence on exports.