Are Asian markets are at risk of further weakness?

Asian shares fell after growing concern about global economic growth and Trump administration’s trade policy fostered some decline in risk appetite, particularly in China. Despite the still fragile recovery for the Turkish lira against the US dollar (USDTRY), there are mounting worries about China’s growth and about emerging markets currencies as Chinese investment holding conglomerate Tencent (HKEX : 700)’s earnings report showed a first decline in profit in almost 13 years. Several analysts described the potential for a fierce trade war between the US and the rest of the world as a main reason behind the sharp fall in commodities like metals, iron ore. For instance, Hong Kong’s Hang Seng Index (HSI) fell 4-4.5% since August 9, 2018.

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