The first month of the new year has brought a loss of securities markets in the Asian and Pacific region. National stock indexes registered significant decreases on a monthly basis, which are highest for measures of stock in China and Hong Kong. They lost between 6% and 10% of its value last month amid a tightening of monetary policy of many central banks. The regional index MSCI Asia Pacific fell 2.5 percent below its closing by the end of December 2009 This is the strongest part of its loss in February 2009 then the stock measure, which covers the securities markets in ten Asian countries, plus Australia and New Zealand, losing 10 percent in one month and fell to multi-floor because of the crisis in the global economy. During today’s trading MSCI Asia Pacific sank 1.7 percent to 117.05 points up and is on track to record strong weekly loss of 4.5 percent. This is the strongest weekly decline for the regional index of March 2009 The reason for this largely rose the news that the central banks of China, India and the U.S. tightened its monetary policy, which will reduce investments in financial assets. Central Bank of India today increased the minimum mandatory reserves commercial banks must hold as a deposit on it. The rate now stands at 5.75 per cent of their deposits to the previous 5 percent, cited by Bloomberg. This is a measure to withdraw excess liquidity from the economy of India, which along with China is the fastest growing Asian country.
Meanwhile in China had taken a series of steps the government and the central bank to curb speculation in the real estate market and bank lending. In this week’s Federal Reserve in turn said it would suspend its programs to promote liquidity in the economy by buying government securities and mortgage. This news sparked sales in the financial sector on the stock exchange in Shanghai, Tokyo, Hong Kong and Sydney. Extractive and energy companies also suffered because of cheaper raw materials, but to join them today and technology companies. The Japanese Nikkei 225 index slid 2.1 percent to 10 198.04 points to end today’s session and ended months with a decline of 3.3 percent. Series of economic data today showed that industrial production in Japan increased for the tenth consecutive month, while the unemployment rate unexpectedly fell to 5.1 percent in December. Deflation in the country, however, remains for the tenth consecutive month and amounted to 1.3%.
In Australia the S & P / ASX 200 slipped 2.2 percent to 4 569.60 points and the index of blue chips NZX 50 in New Zealand fell by 0.6 percent to 3 164.65 points. The monthly decline in the Australian market is estimated at 5.5 percent, while in New Zealand is 1.8%. South Korea KRX 100 lost 2.4 percent daily and 5.2 percent for the month, a Taiwanese Taiex index slid 0.7 percent today to increase the monthly loss to 5,8 per cent. The most significant monthly decrease, however, suffered the securities markets in China and Hong Kong. Wide Chinese Shanghai Composite Index slid 0.2 percent today, ending months with a loss of 8.4 percent. CSI 300, which brings together the largest and most traded companies on the Shanghai Stock Exchange, in turn, decreased by 10 percent on a monthly basis, while Hong Kong’s Hang Seng lost 6.4 percent compared to December. Data EPFR Global research company showed that investors have pulled more than 608 million dollars from funds that invest in the stock companies in developing countries over the past week. This is the first outbound cash flow for the past 12 weeks due to investor fears of inflation in the prices of financial assets in those countries.