Asian stocks slumped because Malaysia crashed plane

Asian stocks slumped because Malaysia crashed plane

The MSCI Asia – Pacific down 0.6% at 9am (GMT) for the first time this week. FTSE Bursa Malaysia KLCI lost 0.5%, while shares of airlines Malaysia Airlines System dropped to 16%. Japan’s Topix down 1.1% and Hong Kong’s Hang Sheng lost 0.88%.

Malaysia’s ringgit fell 0.4% against the dollar. 10-year bonds fell 0.06% Australia’s lowest after a year.

Asian stocks slumped because Malaysia airline
Asian stocks tumbled this morning as co-host Malaysia. Photo: Telegraph

U.S. stocks yesterday has not escaped the influence when the accident raises concerns geopolitical tension Russia – Ukraine continues to escalate. In just one hour after the news release, the S & P 500 fell 0.7%, while the Nasdaq lost 1%. However, by the end of the session, the market has stabilized somewhat. S & P 500 lost only 0.4%, the Dow Jones lost 0.1% and the Nasdaq fell 0.5%.

Airline stocks also suffer the same fate. NYSE ARCA Airline Index on the New York Stock Exchange closing down 2.7%. Boeing shares – the manufacturer of the aircraft crashed Malaysia Airlines also lost 1.2%.

Government of Ukraine said that the plane was force pro-Russian breakaway shot down, that killed 298 people on board. However, the counter-protest groups, it is alleged actions of the military aircraft fly into Ukraine as a war zone.

In addition to news about the accident, when the market tanked in the Middle East conflict step into a new stage. Today, Israel has sent troops and tanks into Gaza to attack Palestinian gunmen.

“Geopolitical risks are rising very sharply. Markets have received too much information unrest. Everybody cautious and will shift to asset quality,” Douglas Gordon – Russell Investment analysts at the said on Bloomberg.

Asian stocks slumped because Malaysia crashed plane
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