Serj Panchuk
Today, on August 10th, Asian-Pacific stock markets started the trading session with a decline because of worse-than-expected reports. China’s external trade report as well as the quarterly income reports published by some Asian companies failed to come up to analysts’ expectations.
In the morning, MSCI Asia Pacific (composite index) declined by 0,9% down to 119,81. Nikkei 225 (Japan) lost 1,3%, Hang Seng (Hong Kong ) dropped 1%, S&P/ASX 200 (Australia) также lost 0,5% of its value, Shanghai Composite (China) devalued by 0,3%.
China’s export declined down to 1% in July against 11,3% seen in June. The import dropped from 6,3% down to 4,7%. China’s trade balance surplus shrank from $31,7 bn down to $25,1 bn. Economicst had anticipated an increase up to $35,2 bn. If the export declines further, thus will be bearish factor for the Chinese economy.
Li & Fung, a clothing manufacturer, saw its stock dropping as much as 21% while the stock of Neptune Orient Lines depreciated by 4,5%. Trend Micro Inc, an security software manufacturer, had to put up with a 9,6% decline. The major reason for the weakness is weak quarterly performance.
According to , Nikkei 225 has formed wave (5) of 3 or cm which is probably a shortened one. If the supposition is correct, the price will start forming wave 4. If this is the case, the index will complete the correctional wave next week.
Serj Panchuk
