Asian stocks follow the DJIA's lead, bears look to DJIA Fibo lows


  • As a result of trade-wars, the Dow was off more than 700 points at its session low
  • Hong Kong’s Hang Seng index led plunged 3.22% in early trade; The Nikkei 225 in Japan fell 2.33%

The Nikkei and Asian stocks in general have been in a sea of red following the poor end to the week last week on Wall Street following an escalation in the U.S.-China trade war late last week. Hong Kong’s Hang Seng index led losses in the region as it plunged 3.22% in early trade.

U.S. President Donald Trump tweeted last Friday that America will hike tariffs on $250 billion worth of Chinese goods to 30% from 25%. Beijing unveiled new tariffs last Friday on $75 billion of U.S. goods.

As a result, the Dow was off more than 700 points at its session low marking the first downside target for the week ahead but ended the session on Friday down 623.34 points, or 2.4%, at 25,628.90. The S&P 500 index dropped 75.84 points, or 2.6%, to end at 2,847.11 while the Nasdaq Composite Index lost 239.62 points to end at 7,751.77, a loss of 3%.

Asian stock crumble

Hong Kong’s Hang Seng index led plunged 3.22% in early trade. The Shanghai composite shed about 1.2% and the Shenzhen component slipped 1.15%. The Shenzhen composite also fell 1.308%. The Nikkei 225 in Japan fell 2.33% and Australia’s S&P/ASX 200 shed 1.54%. Overall, the MSCI Asia ex-Japan index declined 2.02%.

The focus is on US stocks and the long term downside targets

1915 to date Fibonacci retracement measure marks the 23.6% at 21000 - below the Dec 2018 lows of 21712. The 21-monthly moving average is located at the May and Jun lows in the 24700s as a double-bottom target. The 23.6% Fibo' of the March 2009 swing lows to all-time highs is located in the 22,200s.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

GBP/USD clings to recovery gains above 1.3200, as BoE looms

GBP/USD clings to recovery gains above 1.3200, as BoE looms

GBP/USD sustains the recovery above 1.3200 in early Europe on Thursday, having found buyers near 1.3150. A fresh US Dollar pullback and a rebound in risk sentiment offer support to the pair ahead of the BoE policy announcements. 

GBP/USD News
EUR/USD holds higher ground above 1.1100, focus shifts to ECB-speak

EUR/USD holds higher ground above 1.1100, focus shifts to ECB-speak

EUR/USD is holding higher ground above 1.1100 in the early European session on Thursday. The pair is underpinned by the renewed US Dollar retreat, as traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed. 

EUR/USD News
Gold defends $2,550 in the Fed’s aftermath, ahead of US data

Gold defends $2,550 in the Fed’s aftermath, ahead of US data

Gold price is defending $2,550 early Thursday, catching a breath after intense volatility witnessed in the aftermath of the all-important US Federal Reserve monetary policy announcements and Fed Chairman Jerome Powell’s press conference.

Gold News
BoE expected to keep interest rate unchanged at 5% as price pressures persist

BoE expected to keep interest rate unchanged at 5% as price pressures persist

After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.

Read more
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures