Japan – Korea stocks blazed red after IMF lowered its forecast of regional economy

Japan – Korea stocks “blazed red” after IMF lowered its forecast of regional economy

The red color spread throughout the Asia-Pacific stock market on October 22 after the International Monetary Fund (IMF) lowered its forecast for economic growth in this area.

Japan’s Nikkei 225 index fell 0.7% on October 22 trading. Photo: AFP

Japan’s Nikkei 225 today closed down 0.7% to 23,474.27 while the Topix index lost 1.09% and ended the day with 1,619.79 points. Shares of ANA Holdings in the Japanese market slipped 4.08% after the airline announced it would lose billions of dollars in the fiscal year ending next March. Besides, shares of Japan Airlines also saw a significant decrease of 2.21%.

Mainland China’s stock market today was also in red, with the Shanghai Composite down 0.38% to 3,312.50 while Shenzhen Component slipped 0.533% to 13,396.18 points. On the Hong Kong bourse, the Hang Seng index was flat and closed with 24,786.13 points.

South Korea’s Kospi index slipped 0.67% to 2,355.05 points while Australian stocks slid only 0.29% to 6,173.80 points. Overall, the MSCI Asia-Pacific Index (excluding Japan) fell 0.25%.

The International Monetary Fund (IMF) on October 21 lowered its forecast for the Asia-Pacific economy to decline to 2.2% in 2020. This is considered “the worst result in history. existence of this region “.

“The economic outlook for the Asia-Pacific region sees the region begin to recover in the third quarter of 2020, but growth dynamics in the countries of the region are unequal, leading to The recovery is divided at different speeds, “commented Jonathan D. Ostry, acting director of the Asia-Pacific region at the IMF.

US stocks fell last night because investors continued to worry about the results of negotiating a new stimulus package in the Covid-19 era. House Speaker Pelosi and Finance Minister Mnuchin have recently made progress in negotiations, but the two sides still have many major disagreements to resolve if the stimulus is to be passed before the 3 presidential election. 11 coming.

All three US stock indexes last night were glowing red. The Dow Jone slipped the deepest with 0.35% to 28,210.82, while the tech-oriented Nasdaq Composite index fell 0.28% to 11,484.69. The S&P 500 slipped the lightest among the three major indices with a 0.22% drop to 3,435.56.

On the money market, the US dollar index against other major currencies fell sharply from the beginning of the week, from 93.2 to 92.768. The Japanese Yen strengthened significantly compared to yesterday and converted 104.53 JPY / USD, while the Australian dollar depreciated 0.22% to 1 AUD for 0.7101 USD.

In contrast to stocks, oil prices on Asian markets went up this afternoon. Futures Brent crude oil price edged up 0.41% and traded $ 41.90 / barrel while US crude futures prices rose 0.25% to $ 40.13 / barrel.

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