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Asian stock markets tumble after oil prices crash | Asian stock markets tumble after oil prices crash |
(about 3 hours later) | |
Asian stock markets fell sharply on Monday spooked by a major crash in oil prices and weak economic data. | |
In Japan, the benchmark Nikkei 225 index fell more than 5% while in Australia, the ASX 200 dropped 7.3%, its biggest daily drop since 2008. | |
Markets have been rattled by the threat of a price war between oil exporting group Opec and its main ally Russia. | Markets have been rattled by the threat of a price war between oil exporting group Opec and its main ally Russia. |
Asian investors also reacted to a slump in Chinese export figures and the shrinking of the Japanese economy. | |
Global markets have already seen heightened volatility over fears of a major economic hit from the coronavirus outbreak. | |
With oil prices crashing more than 30% on Monday, energy firms have seen some of the biggest share price falls. | |
Australia-listed Oil Search's share price dropped by 31% while energy firm Santos saw its shares drop more than a quarter in value (27%). | Australia-listed Oil Search's share price dropped by 31% while energy firm Santos saw its shares drop more than a quarter in value (27%). |
Oil and other commodity companies make up a large part of the Australian stock market. | Oil and other commodity companies make up a large part of the Australian stock market. |
In China, its benchmark Shanghai Composite fell almost 2%, while in Hong Kong, the Hang Seng index plummeted 3.7% in early trading on Monday. | In China, its benchmark Shanghai Composite fell almost 2%, while in Hong Kong, the Hang Seng index plummeted 3.7% in early trading on Monday. |
"China will make its contribution to the thunder clouds hanging over markets as Monday starts," said Jeffrey Halley, senior market analyst at broker OANDA. | |
On Saturday, China released import and export figures for the first two months of the year. Exports fell by 17.2% while imports dropped by 4%. This gave the Chinese economy a trade deficit of $7.1 billion as it struggles with the economic impact of the coronavirus outbreak. | On Saturday, China released import and export figures for the first two months of the year. Exports fell by 17.2% while imports dropped by 4%. This gave the Chinese economy a trade deficit of $7.1 billion as it struggles with the economic impact of the coronavirus outbreak. |
"China may slowly be returning to work, but manufacturers will now likely be facing an international fall in demand, with coronavirus now well-established outside of Chinese shores," added Mr Halley. | "China may slowly be returning to work, but manufacturers will now likely be facing an international fall in demand, with coronavirus now well-established outside of Chinese shores," added Mr Halley. |
In Japan, market sentiment was hit by GDP data that showed a plunge in economic growth of 7.1% in the fourth quarter of 2019. |