Asian shares plunge while analysts look ahead of Central Bank’s monetary policies

Asian shares plunge while analysts look ahead of Central Bank’s monetary policies


News for Asian stock markets have revealed a plunge in futures as investors take a tough call to wait for U.S Federal Reserve and Bank of Japan’s monetary policies – beheading this week.

Exclusive data obtained from Wall Street Journal had revealed:

| Japan’s Nikkei Stock Average and Hong Kong’s Seng Index |– both slipped by 0.8%

| Shanghai Composite Index showed a loss worth 0.4% |– It remains bearish by 17% year-to-date.

During Asian TRADING, second global dominant currency, Yen showed a gain worth 0.4% against its rival U.S. Dollar.

The market analysts do not look for an outcome by Fed to raise interest rates when it announces its April’s monetary policy later this week. However, Bank of Japan could be merciful in giving rise to a safe channel during ongoing global financial *un-certainty.

(*The uncertainty ahead of the banks’ meetings weighed on Asian markets, which had been rallying since second month of this year)

“Prices have probably moved up too fast over the last couple of weeks.” Jefferies’ Chief global equity **strategist, Sean Darby –

(**He looks onto the receipt of Asian commodities’ flattish trading as a result of upcoming policies)

The Japanese insurers did seem more inclined towards hoping a BOJ’s ease policy rather Kumamoto earthquake’s impact.

| Dai-ichi Life Insurance gained worth 2.6% to ¥1,506.0 |

| MS&AD Insurance Group gained worth 4.3% |

| South Korea’s Kospi was roughly flat | Meanwhile the Australian and New Zealand markets were closed for holiday |

The domestic share market in China has also been encapsulated concerns about bond defaults by state-owned enterprises, like power transformer manufacturer, Baoding Tianwei Group. Outstanding margin debt, or money local investors borrow from brokerages to buy stocks, has dropped to roughly $134 billion (i.e. 872.2 billion Yuan) – the lowest level in over a month(source: Wall Street Journal).

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Javier Davis produces news on stocks, currencies, bonds, commodities, and real estate. His in-depth research covers most of the major financial markets in America, Europe, and Asia. His research is based on the interconnected relationships among economic and technical factors that drive valuations in the markets, with an emphasis on how to formulate investment strategies. From interest rates to inflation to economic growth and much more, the fundamental concepts presented on this website provide an essential foundation of knowledge for investors to profit in stocks, bonds, commodities, currencies, and real estate markets.