Asian markets are broadly down on 25 July 2008 trading day. Attributed by the overnight losses of Dow Jones Industrial Index fell 252.08 or 2.17 percent on Thursday, Nikkei, the market index for Japan reacted by closing at 13334.76, a 1.97 percent drop.
Like Nikkei, other major Asia markets like FTSE STI, KOSPI, HSI, SENSEX and KLSC reacted with more than a percent drop in respective markets.
STI saw a 55 points or 1.85 percent fall to 2922.91 on Friday. US big dropped had impact the Asia markets significantly. The cause for the sell-off according to news resource was triggered by a steeper-than-expected decline in existing home sales that wiped away some of the market’s optimism about upbeat earnings reports.
Market direction is most likely to follow the cue from Wall Street again next week as upbeat earnings reports are expected. If unexpected negativity were to be announced, market will once again be thrown in a sea of red. Crude price will be another market catalyst, providing the market directions for major markets next week. A further drop will be extremely positive for the recovering global economy.
The above are based on personal knowledge as well as opinion. Not an inducement to trade.