Business trends wax and wanes over time. Even though your business is a household staple, you can still experience a reduction in revenue for a lot of reasons. One of the main reasons why businesses declare bankruptcy is because they fail to stay relevant in a world that is increasingly becoming globally competitive. Global issues can mess with the global economy and likewise have a domino effect on various businesses in the market.
Asian businesses even suffer from issues affecting western soil and that’s more than half of the planet’s population struggling financially. Political instability, social unrest, infrastructure issues and economic stagnation are just a few of the challenges faced by the Asian market and can determine whether Asia remain prosperous or not.
Singapore shares slid further on Wednesday (May 17) as markets in Asia tumbled on worries over political issues in the United States.
The benchmark Straits Times Index (STI) shed 3.61 points, or 0.11 per cent, to 3,224.10. A total of 1.35 billion shares worth $1.23 billion exchanged hands across the bourse.
Data that showed non-oil domestic exports (Nodx) here dipped 0.7 per cent in April did little to shore up sentiment as well.
“The first decline in Nodx in four months could mean further jitters after the heavy sell-off on Tuesday,” IG market strategist Jingyi Pan said in a note.
Tokyo, which fell 0.53 per cent, was among those that saw the biggest losses in the region. Shanghai dropped 0.27 per cent, Hong Kong pared 0.17 per cent, while Sydney sank 1.1 per cent.
Traders appear to be spooked by the latest developments surrounding the saga between US President Donald Trump and former FBI director James Comey – namely reports that Mr Trump had asked Mr Comey to end a probe into his former national security adviser.
Little does President Trump know how much of an impact his statements or policies have on the global arena. The Asian market plummets further as yet Trump made another questionable move that raises the eyebrows of many.
Asian stock benchmarks skidded lower Thursday following Wall Street’s worst day in months as Washington‘s political chaos made investors more nervous about risky assets and the outlook for President Donald Trump’s business-friendly proposals.
KEEPING SCORE: Japan‘s benchmark Nikkei 225 index slid 1.7 percent to 19,479.84 and South Korea‘s Kospi lost 0.7 percent to 2,276.50. Hong Kong‘s Hang Seng shed 0.6 percent to 25,143.35 and the Shanghai Composite index in mainland China dipped 0.2 percent to 3,099.24. Australia‘s S&P/ASX 200 skidded 1.3 percent lower to 5,709.50. Benchmarks in Taiwan, New Zealand and Southeast Asia also lost ground.
Politics has long been a catalyst for movements in the stock market. Disturbing issues can rattle the confidence of investors and cause a panic selling of stock shares. It’s a kind of domino effect we like the least.
Asian equities sank Thursday while the dollar held losses on fears the intensifying crisis surrounding Donald Trump could lead to his impeachment and shatter any chances of his economy-boosting agenda being implemented.
Investors tracked the heaviest losses in New York since Trump was elected, following claims by recently fired FBI boss James Comey that the president pressed him to drop a probe into ex-national security advisor Michael Flynn’s links to Moscow.
That came a day after it was reported Trump had divulged classified information to Russia’s foreign minister, fanning further allegations about his own ties to the country’s leaders.
The Asian market is full of all sorts of uncertainties that are worsened by Trump’s unpredictability. Moreover, many Asian countries are plagued by problems of widespread corruption, poverty, political conflicts, human rights, crimes, and natural calamities that have a big impact on the overall economy.
Even the government can’t always be relied on to maintain peace and security in their own countries, which are among the reasons why multinational companies have second thoughts in putting up business in these countries. Despite being home to roughly 60% of the world’s population, they also happen to be the poorest in the world, so let’s wait and see how Asian leaders whip up their magic and salvage the Asian economy before it hits rock bottom.
Asian Businesses Struggle To Keep Business Afloat is republished from The Chinese Human Rights Development Net Blog