Asian Stock Market Showed Declines Following US Manufacturing Report; India’s Stock Market Dipped Following New Record Highs On Monday

In today’s trading session, Asian shares mostly declined following a report indicating a contraction in US manufacturing in May, signaling a slowdown in the economy. Meanwhile, oil prices fell while US futures saw a slight increase. 

India’s Sensex spearheaded the region’s decline, plummeting by 4.1% to 73,496.24, as the tally for the country’s six-week-long national election suggested a lower-than-anticipated seat count for the incumbent Prime Minister Narendra Modi’s party. Modi’s National Democratic Alliance maintained a comfortable lead over its closest competitor. 

In the first 20 minutes of trading, a steep drop in the Indian stock market resulted in a significant loss for investors, with their wealth decreasing by approximately Rs 20 lakh crore. Experts pointed out that the market had already factored in a substantial victory for the NDA, as indicated by exit polls. However, early trends suggested that the results might not align with market expectations, unsettling investors. 

In yesterday’s session, the Sensex and the Nifty 50 recorded substantial gains in anticipation of a strong majority for the NDA. 

Adani Group stocks saw a notable decline of up to 18%, experiencing a significant setback following considerable increases in the preceding trading sessions. 

The sudden downturn is attributed to the unwinding of speculative positions, with investors opting to take profits or lower their exposure. 

Meanwhile, Japan’s Nikkei 225 index lost 0.2% to 38,837.46 and South Korea’s Kospi experienced a 0.8% decline, settling at 2,660.69.

Hong Kong’s Hang Seng index stood out, increasing by 0.5% to 18,494.28, while the Shanghai Composite index saw a marginal decrease of 0.1% to 3,076.96.

Australia’s S&P/ASX 200 slipped by 0.3% to 7,740.80. Taiwan’s Taiex lost 0.8%

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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