Global risk-off looms as Asian markets slide

TOKYO — Markets around the world appear set for a slide, as investors move out of riskier assets in Asian markets in the wake of the deadly attacks in Paris on Friday, which killed more than 100 people. Weak economic data also dampened investor confidence in some markets.

Asian stock markets, the first to open after the Paris attacks, all moved lower on Monday morning trading.

  As of 11:30 a.m. Monday Japan time, the 225-issue Nikkei Stock Average lost as much as 1.75%, or 344.87 points, from Friday to 19,252.04. Data released by the government showed that Japan’s economy shrank an annualized 0.8% in July-September, more than the median market forecast of a 0.2% contraction, placing Japan in a technical recession. In China, the Shanghai Composite Index fell 1.7% to 3,519.42, in part due to Chinese stock regulators’ announcement over the weekend that it would raise margin finance requirements.

The Hang Seng index dropped 1.9% to 21,958.28, while Indonesia’s Jakarta Stock Exchange Composite Index dropped 1.7%, and Singapore’s Straits Times Index was down 1.3%.

Investors also moved out of riskier currencies. The Australian dollar and the New Zealand dollar, as well as other Asian currencies, moved lower against the dollar in morning trading. The euro was down as much as 0.5% against the dollar in Monday trading.

“I don’t think the Paris attacks will weigh on investor confidence for long,” said Shingo Ide from the NLI Research Institute. “As horrendous as it is, compared to the 9/11 attacks in 2001, the magnitude and the effects of the attacks will be limited. I see Asian stocks eventually rebounding.”

asia.nikkei.com

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