Following yesterday meeting between Chinese and Philippines Presidents in Manilla, which concluded on an oil and gas offshore deal in the South China Sea in a way of further rapprochement, Asian equities have been facing further difficulties.
Key headlines relating to yesterday crude oil prices drop and worries over growth outlook in EM countries pushed energy and industrials sectors to the downside. However, the bounce in Consumer Discretionary, Health Care and Tech stocks allowed Chinese shares to bounce back into positive territories.
On the same trend, major US market indexes have been declining across the board, losing gains from 2018 amid further drop in tech sector, as investors remain concerned over disappointing Q3 financial reports.
Indeed, since the beginning of the year, the blue chips Dow Jones Industrial Average is looking at a performance of -1.03%, while both the S&P 500 and the tech stock indexNASDAQ remain at -1.19% and +0.08% respectively.
On the other side, Asian indexes remain largely behind, with year-to-date performances ranging from -5.50% (Nikkei 225) to up to -20% (China mainland Shenzhen CSI 300).
Accordingly, we expect EM markets to bounce back into positive territory as soon as US markets will be maintaining positive gains.
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