Asian Markets Drop Sharply Monday

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 |  About: iShares MSCI Japan ETF (EWJ)
by: SA Eli Hoffmann

Asian markets were down sharply Monday.

The Nikkei dropped -1.71%. Yahoo Japan (NASDAQ:YHOO) dived 6%. Mizuho Financial (NYSE:MFG) fell 5%. Mitsubishi UFJ (NYSE:MTU) dropped 4.3%.

The Hang Seng plunged -3.51%. CNOOC (NYSE:CEO) fell 4.8%. China Petroleum (NYSE:SNP) was down 4.5%. China Life (NYSE:LFC) was off 4.3%. China Mobile (NYSE:CHL) slipped 2.8%.

China's Shanghai Composite index fell -2.62%.

Financial stocks were among the hardest hit, after recent data showed U.S. inflation was higher than expected, reducing the likelihood the Fed will move to further cut interest rates in the near future. The drop accelerated in the afternoon, but traders said thin volume and volatility moved stocks more than any particular change in economic outlook. "I don't think fundamentals have deteriorated that much. The market is moved by speculative trades in the absence of buyers," T&D Asset Management's Akihide Kinugawa said.

Sources: Reuters

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