Asian Investors Rattled by Dow's Plunge

Most Asian markets tumbled Friday in the wake of one of Wall Street's biggest drops of the year, although European markets rebounded modestly from sharp losses the previous day.

Japanese stocks fell to nearly three-month lows, Philippine stocks marked their steepest decline in 10 years, and South Korea's benchmark index - which had hit a record Wednesday - sank 4.1 percent, its biggest slide in more than three years. Chinese stocks, however, ended the day flat.

Investors in Asia were rattled after U.S. and European markets plunged Thursday amid worries over the U.S. mortgage and corporate lending markets. Those woes could cause global liquidity to dry up as international investors pull out of riskier assets, including Asian emerging markets, analysts said.

Read more in Financial Express

Overseas bourses take cue from India markets

Often, in the absence of a visible domestic trigger, the behaviour of Indian stock markets is explained as a result of global developments, mainly the rise or fall of overseas markets. Curiously, it will not be far-fetched to state the contrary, that the global stock exchanges follow the Indian markets’ cue.

A study of the movements of world markets since May 2006 by Mumbai-based Man Financial shows that the S&P CNX Nifty recorded its high ahead of all major international indices. It recorded its intermediate top during February 6-12 this year and all-time intra-day high of 4,245.30 on February 8.

This was followed by all major international indices recording their respective highs. The only exception has been the Hang Seng index of Hong Kong, which recorded its high on January 24 this year.

Read more at Business Standard