A surge in commodity prices across the world made the stock markets of Asia, especially in Korea and Japan, decline drastically. The MSCI Asia Pacific Index revealed a dip in stock prices by almost 1.7% owing to the disappointing performance of the Asian technology sector. The stocks that were worst hit include Taiex of Taiwan, Kospi of South Korea, and Nikkei 225 of Japan that declined by almost 10% last week. The regional benchmark of the Asian equity market has dipped by 3% this month after plunging by 5.2% in September. Amid the plunge in the Asian stock market, the price of commodities has hit an all-time high owing to a resurgence in the demand for raw materials in collision with supply constraints.
The global stock market has recently witnessed a plunge in prices as well. In September, the global stock price dropped by 5% due to the rise in Treasury yield during the Federal Reserve stimulus. The crackdown in the corporate sector of China and the slowdown of the Chinese economy also contributed to the dwindling of the world stock market. Moreover, the economy is still reeling under the adverse impact of the pandemic. Therefore, the stock market is yet to recover in terms of stock prices.
Stock traders and investors need to keep an eye on the following sectors to make stock market-related decisions in the near future:
The makers of Covid-19 medicines and vaccines like SK Bioscience and more have dipped again for the second day in a row. The decline of stock prices in the Covid treatment sector happened because Merck & Co. declared that the Covid medicines of Merck can successfully decrease the death and hospitalization rates of patients by 50%. This declaration led to a plunge in the bioscience stock sector across the world.
Several technology giants of China, including Tencent, faced a slump in stock market prices owing to the regulatory crackdown in Beijing and the increasing yields of the US Treasury.
Refinery corporations and producing companies of crude oil in Asia, including Inpex of Japan, are going through an inclination in stock market prices as OPEC+ has agreed to increase the production of crude oil.