AFP, Hong Kong :
Asian stocks fluctuated Monday with investors still on edge after last week’s rout, with caution after another hammering for Wall Street offsetting bargain-buying.
Even a forecast-busting jump in US economic growth in the third quarter was not enough to prevent all three main indexes in New York from tanking on Friday, with the Dow and S&P 500 falling into negative territory for the year.
The US losses came after disappointing earnings reports from titans Alphabet and Amazon, which compounded concerns about rising interest rates and the China-US trade war that shows no sign of abating.
“Fears of an economic slowdown in the US proved to be premature, but investors worry that the boost from (Donald) Trump tax cuts is evaporating,” said Alfonso Esparza, senior market analyst at OANDA.
“Stocks have been vulnerable as the US Federal Reserve stands firm on its plans to hike one more time this year and three or four in 2019 on its path to rate normalisation. US-China relations have not improved and earning reports have started to reflect the impact of tariffs on China.”
Hong Kong edged up 0.4 percent after moving between gains and losses, while Tokyo ended 0.2 percent off and Shanghai lost more than two percent. Seoul shed 1.5 percent.
Asian stocks fluctuated Monday with investors still on edge after last week’s rout, with caution after another hammering for Wall Street offsetting bargain-buying.
Even a forecast-busting jump in US economic growth in the third quarter was not enough to prevent all three main indexes in New York from tanking on Friday, with the Dow and S&P 500 falling into negative territory for the year.
The US losses came after disappointing earnings reports from titans Alphabet and Amazon, which compounded concerns about rising interest rates and the China-US trade war that shows no sign of abating.
“Fears of an economic slowdown in the US proved to be premature, but investors worry that the boost from (Donald) Trump tax cuts is evaporating,” said Alfonso Esparza, senior market analyst at OANDA.
“Stocks have been vulnerable as the US Federal Reserve stands firm on its plans to hike one more time this year and three or four in 2019 on its path to rate normalisation. US-China relations have not improved and earning reports have started to reflect the impact of tariffs on China.”
Hong Kong edged up 0.4 percent after moving between gains and losses, while Tokyo ended 0.2 percent off and Shanghai lost more than two percent. Seoul shed 1.5 percent.
