TOKYO (Reuters) – The Asian stock market began cautiously in the week as China's and European soft financial data became evidence of global growth and increased austerity as a result of the expansion of international trade relations.
The investor sits on a share issue in Beijing, China, on 7 December 2018 at a brokerage agency. REUTERS / Thomas Peter
MSCI's largest share of Asian and Pacific shares outside Japan fell 0.1 percent from Monday to Friday due to losses in China and Hong Kong. Shanghai and Shenzhen Stock Exchange CSI 300 fell 0.9 percent
Other markets showed some flexibility. Japan's Nikkei rose by 0.5 per cent, while the United States' stock prices rattled 0.2 per cent. Taiwan also received 0.3 percent.
On Wall Street's Friday, the S & P 500 lost 1.91 percent to 2.599.95, marking its lowest closing since April 2.
The benchmark has fallen by 11.3 percent from the September 20 record – the worst result since it dropped by more than 14 percent between May 2015 and January 2016.
The biggest attraction was Johnson & Johnson, which fell 10 percent of its biggest drop since 2002, when Reuters announced that the puppet knew that baby powder was contaminated with cancer-causing asbestos.
Market withdrawal was also reflected in the deterioration of the global economic outlook, and the latest evidence of China and Europe has slowed down.
IHS Markit's Flash Composite Purchasing Manager Index fell to 51.3, its lowest since November 2014, from the end of November to 52.7. This was clearly below the pessimistic forecast in Reuters poll, where the median expectation was a modest rise to 52.8.
The study showed that eurozone companies yearned a dark atmosphere, extending their activities at the slowest pace for more than four years with the exception of growth in new orders, dwindling, commercial tensions and violent protests in France.
Defeated financial news came after China announced a batch of soft indicators, and retail sales grew the worst since 2003, and industrial output grew at least in nearly three years.
China's economy has been slowing down in recent quarters when a multiannual government campaign to curb loan relief has increased the company's financial burden on production and investment.
Investors are now expecting President Xi Jinping's great speech on Tuesday to mark the 40th anniversary of China's reform and opening up.
In the foreign exchange market, the dollar remained solid when it faced a 19-month interest rate against six other major competitors on Friday as the US economy seems to be in a better position than the other.
The United States retail without cars, gasoline, building materials and food services rose 0.9 percent last month after the last 0.7 percent rise in October.
Against this background, the US Federal Reserve is almost certainly considered to have raised interest rates at its two-day political meeting, which begins on Tuesday and which continues to strengthen the attractiveness of the dollar's return.
At the same time, many market participants also expect that the Fed will lower its forecasts for future interest rates, given the rising wind power.
"You could argue that if the Fed calculates estimates, it could be considered a continuation of the economic downturn," said Daiwa Securities Global Strategic Group Hirokazu Kabey.
"But given the unstable market, I think it would be more dangerous if the Fed believes that it will raise prices three times next year."
The Euro was traded at $ 1,1307, dropping to $ 1,1270 on Friday, the lowest on November 28.
Sterling rose last week near the beginning of the 20-month period, and there was a growing concern that Britain had been chaotic leaving the European Union.
More than 100 days until Britain leaves Bloc on March 29, Brexit remains in the air with ever-growing demands that it is not possible to get out of the country, possibly in disarray divorce, according to which business fears would be highly damaging or another referendum.
The Pound Course was $ 1.2580, about half the low of Wednesday's $ 1.477.
The yen was slightly shifted to $ 113.48.
The biggest rider was the Mexican peso, who reached the Mexican government after the new left wing, avoiding great surprises in its carefully watched first budget, insisting on the former tax promises made to investors.
The weight rose from 0.8 percent to $ 20.994, near the edge with key resistance of 20.
Oil price throws wounds on Friday's decline, despite the world economy.
The US West Texas Intermediate (WTI) raw futures were up to $ 51.22 a barrel when lost 2.7 percent last week.
Editing Shri Navaratnam