Oscillation in Asian share markets
The Asian markets remain fluctuating with fluctuating political scenarios around the world. The optimism seen in the market due to positive signs in China crashed the other day with uncertainty growing in Greece. The country is likely to go for second round of votes and political pundits are speculating its possible exit from the Euro zone.
If Greece walks away from its debts, an exit from the euro currency zone would be likely, and the effects would ripple throughout the rest of Europe and its struggling economies.
Asian stock markets fell Tuesday, against little growth the other day. Japan’s Nikkei 225 index fell 1.1 per cent to 8,876.16 and South Korea’s Kospi index fell 1.4 per cent to 1,888.16. Australian, Taiwanese and Indonesian markets showed similar trends.
On Monday, Japan’s Nikkei 225 index had gained 0.8 per cent within the first hour of trading to 9,028.65 and South Korea’s Kospi added nearly 0.2 per cent at 1,920.22.
The reason behind rise in Asian shares was after a move by China’s central bank over the weekend to encourage lending and curtail a slowdown.
The People’s Bank of China announced to reduce the bank reserve ratio requirement by a half percentage point, bringing down to 20 per cent for most major banks and effectively frees up billions of dollars for lending.
This optimism did not live a day, even in Hong Kong, where Hang Seng Index fell 0.1 per cent to 19,710.68 and the mainland’s Shanghai Composite Index was 0.5 per cent lower at 2,370.24.
The Greek political stalemate has already pulled US stocks lower and now the ripples are seen in Asian markets as well.