Asian markets wobble uncertainty in Japan lingers

Japanese stocks were sold off in the morning and were still in the red in the afternoon.

Markets are still anxious as Japan is expected to put an official estimate on the extent of damages from the earthquake and tsunami that hit the country last week.

Tokyo Electric Power Co, the owner of the damaged plant slumped 4.3 per cent while Toyota Motor Corp, the world’s largest carmaker, dropped 1.5 per cent after saying it will halt domestic production through March 26. JTekt Corp, a car parts supplier slumped 5.6 per cent.

In Hong Kong China Coal, the nation’s second largest producer of the fuel, dropped 6.6 per cent. Maanshan Iron & Steel Co, China’s second biggest Hong Kong traded steelmaker, slipped 2.8 per cent after reporting second half earnings slumped 95 per cent.

In Australia, the local market switched from positive to negative (territory) and back again in another lacklustre day of trading.

A lot of people must have been hurt by the market falls last week. There’s not a lot of conviction amongst investors at the moment.

It feels like the market has lost direction temporarily. People seem to be just following and trading the news. And of course, you cannot discount all the uncertainties still hovering around the global markets.

At the moment, people are getting in and out of sectors or specific stocks. They are not holding on to their positions for long. There seems to be more short-term (trading) investing at the moment. And you can’t blame people if they are non-committal given the market condition.

We may see this lacklustre and conviction-less environment for a while. But the good thing is the market is now above or hovering around the 200-day Moving Average (MA) again. This means we’ve bounced back from the lows hit just right after the Japanese disasters.

StoneX Financial Ltd (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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.