Stock markets across the Asian region went back to their losing ways, a session after showing some signs of recovery, as most indices lost almost all the ground they had gained in last session. Equity indices in the region traded with notable losses as investors at large remained influenced by the weak overnight close on Wall Street where the better than expected US existing home sales data was offset by former Greek Prime Minister Lucas Papademos’ comments that plans for the debt laden nation’s exit from the single currency union are being considered. The US data indicated that sales of previously owned homes increased 3.4 percent to 4.62 million units in April, the highest level seen in around two years.
However, the sentiments were also dampened ahead of a European Union summit as the Organization for Economic Cooperation and Development (OECD) warned that the intensifying European debt trouble could seriously damage the global economic recovery prospects. Jittery regional investors dragged benchmarks in Hong Kong, Japan, Singapore, South Korea and Taiwan by over a percent each in the session. However, the equity indices in China traded with slight losses after OECD opined that the world’s second largest economy would grow by 8.2% in 2012, weakest in more than a decade, and then bouncing back to 9.3% in 2013.
Shanghai Composite eased 4.67 points or 0.20% to 2,368.64, Hang Seng Index plummeted 324.80 points or 1.71% to 18,714.35, Jakarta Composite plunged 67.12 points or 1.67% to 3,953.98, KLSE Composite declined 5.77 points or 0.37% to 1,541.07, Nikkei 225 slumped 105.83 points or 1.21% to 8,623.46, Straits Times Index sank 36.50 points or 1.29% to 2,787.25, KOSPI Composite Index shrank 24.17 points or 1.32% to 1,804.52 and Taiwan Weighted drifted 108.19 points or 1.49% to 7,166.70.