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Asian equities skid lower on underwhelming global leads

30 Jan 2012 Evaluate

All Asian markets, which were open for trading for the first time on Monday after the Lunar New Year holiday, were exhibiting pessimistic trends as nervousness sunk in since underwhelming US economic growth reading dampened investors’ morale and triggered risk aversion from risky asset classes like equities. The world’s biggest economy expanded at a slower than anticipated pace of 2.8% in the fourth quarter however, that was the fastest of 2011 but lower than the 3 percent that economists hoped. Sentiments also remained bleak as uncertainty kept looming over Greek debt deal while market participants also awaited the meeting of Euro-zone ministers scheduled later on Monday to discuss austerity and belt-tightening measures.

The benchmark in China slipped lower in the first trading session of the Year of the Dragon on Chinese lunar calendar as investors remained cautious, lacking any significant upside triggers. On the contrary, the equity index in Taiwan, which too re-opened after a week-long holiday, spurted over two and half a percent on getting support from encouraging performances by global markets during the long lunar new-year holidays.

Shanghai Composite eased 3.19 points or 0.14% to 2,315.93, Hang Seng slipped 71.22 points or 0.35% to 20,430.45, Jakarta Composite plummeted 37.67 points or 0.94% to 3,948.74, Nikkei 225 declined 54.14 points or 0.61% to 8,787.08, Straits Times sank 22.83 points or 0.78% to 2,893.43 and Seoul Composite plunged 17.19 points or 0.87% to 1,947.64.

On the flipside only Taiwan Weighted jumped 189.74 points or 2.62% to 7,423.43.

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