Calmer voices emerge amid market carnage
Observers say continued selldown an issue of confidence rather than sign of coming recession or financial crisis
Singapore
ASIAN stocks took another beating on Thursday after US stocks fell on Wednesday night. Hong Kong's Hang Seng Index fell below book value for the first time since the Asian financial crisis; China's Shanghai Composite fell through the 2,900-point barrier.
Observers say forced selling by oil producers' sovereign wealth funds, along with unwinding of various trades, could be behind the continuous bleeding.
However, the nub of the matter is more a lack of confidence than a looming recession, some say. Low oil prices should be a boon, not a bane.
A note from institutional asset manager Principal Global Investors said: "While investors are focused on disruption from potential defaults by energy and materials companies, they are missing the huge boost to household income around the world from lower energy and food bills. Businesses are also getting the bon…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Singapore shares climb at Thursday’s open; STI up 0.3%
Stocks to watch: CDL, DFI Retail Group, Cordlife, First Resources
US: Wall Street slips as dour earnings, chip stocks weigh
Europe: Adidas, LVMH steer shares higher on earnings relief
Rebound relief for Asian stocks; STI up 0.3% led by DBS, UOB
Asia: Stocks swing after latest selloff as Fed, Middle East dampen sentiment