Of the key markets in the Asia Pacific region, only the South Korean Kosdaq saw a slight uptick.
The global stock market is experiencing differing growth moves as key inflation markers in many regions remain positive. In Hong Kong, the Hang Seng Index (INDEXHANGSENG: HSI) is down by 2.22% after shedding a massive 411 points to be pegged at 18,183.80. While the Hang Seng Index is merely trailing all the other Asian stock indices, it officially entered a bear zone with its current performance.
In what appears to be a coordinated move, the Shanghai Composite SSE Composite Index (SHA: 000001) slid by 0.61% to 3,204.56 while the Shenzhen Component SZSE Component Index (SHE: 399001) equally dropped by 0.70% to 10,793.85. The fall in the Chinese stock indices was fueled by China’s latest manufacturing purchasing managers index which plunged below expectations.
This index was pegged at 48.8 for the month of May, a figure that is below the 49.2 recorded in April. Other key markets in the Asia Pacific region also recorded bearish growths with the Japanese TOPIX (INDEXTOPIX: TOPIX) dropping by 1.32% to 2,130.63. The plunge in the TOPIX can be tagged as a good correction seeing the index rise to a multi-decade high recently.
The index is seeing massive growth strides from Japanese stocks, a move that has pushed market analysts to project a positive outlook for the market in the long term. The current slip in the TOPIX was also observed in the Nikkei 225 (INDEXNIKKEI: NI225) fell as much as 1.41% to 30,887.88.
Of the key markets in the Asia Pacific region, only the South Korean Kosdaq saw a slight uptick with a growth of 0.64% to 856.94.
Global Stock Market Moves, the Concession
From indications, the bearish uncertain moves in the global stock market may stick around for some time as countries begin to navigate the impact of monetary policies in the bid to fight inflation.
In Australia, the weighted inflation gauge rose more than expected to 6.8%. According to analysts polled by Reuters, an inflation rate of 6.4% is what is expected, implying that the central bank’s effort to tame this unpleasant rise in the cost of living is having not much effect.
The United States has also seen a major bashing with the Dow Jones Industrial Average (INDEXDJX: .DJI) dropping by 0.15% to 33,042.78. The Nasdaq Composite (INDEXNASDAQ: .IXIC) and the S&P 500 Index (INDEXSP: .INX) surprisingly recorded upticks. While the former surged by 0.32% to 13,017.43, the latter’s growth remains marginally positive.
The fight against inflation in the US is far from being won but when compared to other major economies, the figures are relatively better. Inflation was pegged at 4.9% in the month of April and the Federal Reserve has continued to raise interest rates in hopes that the inflation will return to its desired level at 2%.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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