Wednesday, 20 January 2016

Anxiety of HKD's leaving from Peg system leads Asian Markets' plunge

Asian stock markets plunged on Wednesday, Jan. 20. The falling-down of Hong Kong triggered the chain-reaction in the Asian markets, Shanhai, Tokyo and Seoul, persons concerned said. Hang Seng Index of Hong Kong fell 3.82 percent, and Chinese Shanghai Index fell some 1 percent. Japanese Nikkei recorded lowest in 15 months and Korean KOSPI plunged to 184.45 recording lowest level since last August.

Analysts thought a lot of hot money left Hong Kong and it provoked the fall in the market. The anxiety of hard-landing in China, possibility of the abolish of Hong Kong Dollar's peg system, Fed's decision of interest rate rising and the possibility of additional fall of oil price, made the bearish market, they said.




They said, hot moneys were bet to Hong Kong autority's abolish of peg system to USD.




Hong Kong denied the the possibility of the Peg system's discard on last Sunday, but Hong Kong Dollar is under the short pressure.





Hong Kong participants forecast the turmoil in the Asian market due to of the Beijing, Fed, oil price and currency war.

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