Asian share prices still listing in choppy waters
Share prices in Asia fell for the third straight session last night, continuing the slide begun on Tuesday, and causing alarm amongst investors whose main saving and investment resource lies in the markets.
The Nikkei index (Japan’s main index) lost 1.5% of its value in early morning trading, while in Taiwan shares were off 2.8% and Shanghai’s main index fell 1.7%.
However, the American index, the Dow, recovered slightly in yesterday’s session and in early morning trading on Thursday the London FTSE was rebounding strongly.
“The markets never go up in a dead straight line,” said Richard Hunter, head of UK equities at Hargreaves Lansdown. “There will always be corrections, even within bull markets, and people with saving and investment in stocks and shares should be aware of this.”
So how worried should people be? “Investing is for the long term and blips like the one we have seen over recent days should not concern sensible investors too much,” Hunter said. “Generally, the economic environment is benign and corporate earnings are strong.”
Now that the worst seems to be over in the Western markets, analysts are studying the strength of the US economy to assess the intensity and direction of future growth in the saving and investment arena.