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Category: Money

Asian Markets down, Following Wall Street

Written on April 26, 2011 by Japhet Writ

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Due to Wall Street's weak earning yesterday, the Asian market also propelled down today.

Mixed US corporate earnings sent lower last Tuesday, as traders waited for ’s updated insight on US economy. Japan’s 225 index was down to 1.1%, while investors unload blue chip shares prior to the expected earning season. Moreover, South Korea’s dropped to 0.6%, while Hong Kong’s decreased to 1.1%. In addition to this, Mainland China’s lost 0.9%. Benchmarks in Taiwan, Philippines, Singapore and Indonesia were also depleted.

Furthermore, the Asian Development Bank says that world food prices surged by over 30% during the first two months of this year. A Manila-based lender reported last Tuesday that food inflation in many Asian economies has averaged 10% early this year, and this may continue due to global oil price hikes, production shortfalls caused by bad weather, and export restrictions. That said, this is a serious drawback for a region that has rapidly rebounded from the global economic crisis.

Traders are watching the Federal Reserve’s two-day meeting that will start today, expecting for any changes about their outlook on the economy, and whether the $600 billion bond-buying effort will expire on June as scheduled. Since Q4 2010, the Federal Reserve has bought government bonds to keep low-interest rates. Hence, Chairman Ben Bernanke and his colleagues are anticipated to signal this week that they will let the program expire.

’s weak earning pulled the stocks lower last Monday. The Dow Jones Industrial Average, Standard and Poor’s 500 Index and Nasdaq Composite loss 0.2% each.

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