Massive Monthly Losses on the Asian Market
Asian stocks and commodities are taking a nosedive this month. Outside of Japan, stocks are down 1.6% – just above last week’s 2012 low. The MSCI All Asia Ex Japan is expected to close out the month down 12%, an eight month low. Japan’s Nikkei slid 1.8% and the Hand Seng is at its lowest in over four months.
Despite the terrible performance, Geoff Lewis, Head of Investment Services at JPMorgan (NYSE: JPM), sees potential improvement on the horizon:
“Well I think we are definitely going through a rough patch that is still more to global worries, global fears, risk-off trade again and concerns coming from Europe. I think the Asian IPO market was healthy enough earlier in the year, so I wouldn’t be surprised if we see a few months now where it is rather difficult for firms to come to the market with IPOs. But I would imagine better conditions will return later in the year. I don’t think this is a major turning point. I see it more as a temporary interruption which has more to do with the events outside Asia than within Asia.”