Asia markets dropped significantly amidst U.S. credit worries. Straits Times Index, STI had dropped 48.59 or 1.75 percent, Sensex the index for India market had dropped 101.93 or 0.7 percent, Japan’s Nikkei had dropped 300.40 or 2.28 percent while Hang Seng Index dropped 446.30 or 2.13 percent. On the other hand, Shanghai posted mixed closing slightly in green.
Looking ahead of the economy worries looming Wall Street, more market down trend can be reasonably expected for Asia markets. Inflation fears and credit worries are far from over and this will make investors staying to watch at the side lines as selling continues.
The markets will be looking for a clear indication or direction henceforth before buying starts. Hope may be placed upon sweet crude to decline for markets to have a softer landing.
The above are of personal opinion and not at all an inducement to trade.