Taking a cue from American stock market collapse, Asian stocks also crumble


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Taking a cue from American stock market collapse, Asian stocks also crumble

After the American stock market crashed on Wednesday, the Asian stock market resultantly slumped when they opened on Thursday morning. Nikkei, the Japanese stock market crashed by around 4.4% while the Shanghai stock exchange was also in the red by about 4.3%.

The Taiwanese stock exchange was the worst hit collapsing by about 6.2%. In light of these volatilities, ANZ analysts noted, "Equity markets are locked in a sharp sell-off, with concern around how far yields will rise, warnings from the IMF about financial stability risks and continued trade tension all driving uncertainty."

The American S&P 500 Index had crashed by around 3.2% because of hastened worry about the ensuing trade face-off between the US and China and about the increase of the yields of the American treasury. The Dow Jones had posted a slump of about 2.2% while the Nasdaq also slumped by around 4%.

It brought about a monetary loss of around $80 billion fpr investors. Meanwhile, the American president Donald Trump once again put the Federal Reserve in the spotlight by terming their decision to increase key rates as crazy.

Trump shared, "I really disagree with what the Fed (Reserve) is doing. I think the Fed (Reserve) has gone crazy."