Asian Markets Are Seen Temporarily Struggling
The Asian stock market along with other investment vehicles was mostly down last Tuesday. Investors were now taking profits and the selling was heavy after a season of healthy gains in the Asian market. The Asian market is still considered very strong and competitive in the global arena; it has even edged past the Wall Street.
The Asian markets
The Shanghai Index dropped by 2.20 percent. It closed to 3,263.05 points or 73.24 points lower than the previous day. This pull down in the index was an expected response after the rally on Monday. The rallying of points was due to China’s central bank cutting of interest rate over the weekend. On other hand, Hong Kong slid down by .74 percent and closed at 24,702.78 points.
The Tokyo index closed at 18,815.16 which is .06 percent lower than the previous day.
Sydney closed strongly on Monday ending at an all time 7 year high. However momentum did not continue as it tumbled down on Tuesday by .42 percent or equivalent to 24.98 points.
On a more positive note, Seoul closed .23 percent higher at 2,001.38.
The American market
Investors in the US market continually enjoy the Bull Run in the American market. On Monday, both the Dow and the S&P closed at six year record highs. The Nasdaq on the other hand closed strongly at above the 5,000 resistance mark for the first time since the year 2000.
Nasdaq closed at .90 percent higher than the previous day while Dow rose by .86 percent and S&P increased by .61 percent.
Why the heavy buying in the American publicly traded shares? The surge in gains came from different merger announcements among giant companies. Reports included the acquisition of Freescale Semiconductor by NXP Semiconductor with a staggering amount valued at $16.7 billion. The deal linked the two corporate giants in the Nasdaq listings.
For the past months the Aussie dollar has been losing its value rapidly. However, this Tuesday, the market saw a positive twist to the dollar’s movement. The Aussie dollar picked up and was seen at 6.2748 yuan. Its US trade was at 6.2850 Yuan. This level of improvement was not seen since the last quarter of 2012.