Euro-zone instability continues to grind Asian markets lower

Stock markets across the Asian region were displaying pessimistic cues for yet another session on Tuesday with majority of equity indices trading with significant losses of around a percent. Sentiments in the region largely remained influenced with overnight plunge on Wall Street where shares extended their somber mood in the new week and despite the late attempt to recovery, closed sharply lower. Exacerbating concerns over the political and economic stability of the European region dampened investors’ appetite for riskier assets like equities and commodities. Investors grew increasingly worried after talks to form a new government in Greece failed and stoked fears that the debt laden nation would exit from the single currency union. Moreover, economic reports showed that Euro-zone factory output fell in March, adding to concerns of recession in the region. Barring the equity indices in Hong Kong and Singapore which showed a slight green tick, all the benchmarks in the region succumbed to the US and European concerns. The market in China plunged about a percent after Pacific Investment Management Co. opined that Asia’s largest economy may grow at the weakest pace in 13 years in 2012.

Shanghai Composite declined 19.28 points or 0.81% to 2,361.44, Jakarta Composite plunged 47.35 points or 1.17% to 4,005.72, KLSE Composite sank 15.78 points or 1.00% to 1,559.30, Nikkei 225 slumped 108.07 points or 1.20% to 8,865.77, KOSPI Composite Index plummeted 28.92 points or 1.51% to 1,884.81 and Taiwan Weighted slipped 43.26 points or 0.59% to 7,333.92.

On the other hand Hang Seng Index rose 3.66 points or 0.02% to 19,738.70 and Straits Times Index gained 3.59 points or 0.13% to 2,867.71.