Pressurized by feeble global cues, all the Asian equity indices are trading in the negative trajectory in Monday’s morning trade as investors remained concerned that an unparalleled levy on bank deposits in Cyprus will reignite the euro zone debt crisis. The tax is part of a rescue plan for cash-strapped Cyprus that was reached Saturday after talks among officials from countries that use the euro, the International Monetary Fund and the European Central Bank. Sentiments also remained dampened after US markets declined on Friday on report of a drop in consumer confidence. Meanwhile, Japanese Nikkei declined about two percent as shares of economy-sensitive firms, which have rallied sharply in the past few months on Prime Minister Shinzo Abe’s aggressive policies aimed at energizing the economy, took a battering.
Shanghai Composite declined 20.64 points or 0.91% to 2,257.76, Hang Seng tumbled 476.04 points or 2.11% to 22,057.07, Jakarta Composite slipped 0.46 points or 0.01% to 4,818.87, KLSE Composite dropped 7.63 points or 0.47% to 1,620.01, Nikkei 225 crumbled 247.81 points or 1.97% to 12,313.14, Straits Times conrtracted 24.01 points or 0.73% to 3,262.04, KOSPI Composite decreased 12.04 points or 0.61% to 1,974.46 and Taiwan Weighted was down by 80.45 points or 1.01% to 7,847.04.
