Friday, 31 May 2013

Nikkei plunges again

Japanese stocks plunged again on Thursday but markets elsewhere mostly shrugged it off.

The Nikkei 225 fell 5.2 percent on Thursday. It has now fallen more than 10 percent from last week's high.

Elsewhere in Asia, though, Hong Kong’s Hang Seng Index and China’s Shanghai Composite Index both fell just 0.3 percent.

And US and European stocks rose. Both the S&P 500 and STOXX Europe 600 gained 0.4 percent on Thursday.

Economic data on Thursday were mixed.

The US economy grew at a 2.4 percent annualised rate in the first quarter, less than the previously-estimated 2.5 percent. Slower inventory accumulation contributed to the downward revision. In contrast, consumer spending increased at a revised 3.4 percent rate compared to the previous estimate of 3.2 percent.

Meanwhile, the US housing market continues to show signs of recovery. Pending home sales rose 0.3 percent in April after a 1.5 percent increase in March.

There were also signs of recovery in the euro area on Thursday. The European Commission reported that its economic sentiment indicator for the euro area rose to 89.4 in May from 88.6 in April.

No comments:

Post a comment