Asian stocks drop on oil price slide, growth worries
- Asian equities are under pressure, tracking the drop in oil prices.
- Concerns of a slowdown in China are likely adding to the bearish pressure around the stocks.
Asian stocks are reporting losses, possibly tracking the overnight slide in oil prices and due to fears the Chinese economy may slow more than expected in the coming quarters.
At press time, the Shanghai Composite is down 0.20 percent and shares in Hong Kong have shed 0.5 percent. Japan's Nikkei is flat-lined, while stocks in South Korea, Australia, and New Zealand are down between 0.3 percent to 1 percent. MSCI's broadest index of Asia-Pacific shares outside Japan down 0.07 percent.
The US oil prices fell 7 percent yesterday - its biggest one-day loss in more than three years - indicating growing concerns about weakening world demand and oversupply.
Further, China October retail sales released earlier today showed softening domestic demand, meaning the world's second-largest economy could slow more than expected in the coming quarters.
The risk assets have been under pressure this week on concerns of peak growth for corporate earnings and the US economy.
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
