Egyptian unrest sends jitters to Asian markets

<p>Asian markets were sharply lower today with the pullback prompted by fears over the growing crisis in Egypt. The Nikkei 225 and Hang Seng Indices […]</p>

Asian markets were sharply lower today with the pullback prompted by fears over the growing crisis in Egypt. The Nikkei 225 and Hang Seng Indices were both down 1%.

In Japan, photo films manufacturer Konica Minolta was down 7.3% after a downgrade to “Neutral” from “Outperform” by Mitsubishi UFJ Morgan Stanley Securities. The downgrade cam on the back of a lower FY10 earnings forecast by the company.
Furthermore, Meidensha Corp was down 6.8% after reporting a 9 month group net loss of 5.75 B Yen.

In Hong Kong, all sectors were down with Cathay Pacific Airways leading the falls. It was down 2.8% on fears that the Egyptian crisis may lead to closure of routes to the Middle East.

In Australia, The local share market recovered some ground in the afternoon, but still trading in negative territory. We saw a big fall at the open today, but we have bounced back a bit since this morning. Most of the Asian markets are also down today due to the impact of the Egyptian political unrest.

The finance sector, which was badly hit this morning, had bounced back a bit this afternoon. Most of the bank shares have recovered due to some bargain hunters. It was only Macquarie Group that’s still hurting this afternoon – down 2.18 per cent, due to its overseas exposure.

We saw some investors picking up trades on the dip and this gave the market some energy this afternoon.

Despite the drop in many sectors today, gold and oil shares have gone up as traders revert to safe haven assets. This bodes well with gold producers like Newcrest Mining (NCM) and Sta Barbara Mines, which are being picked up by investors today.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.