Published: Tue, October 30, 2018
Markets | By Erika Turner

Markets Right Now: Asian shares fall after rout on Wall St

Markets Right Now: Asian shares fall after rout on Wall St

The technology-heavy Nasdaq composite had its worst day since in seven years and finished 12.3 per cent below its August peak.

Results from S&P 500 companies have pushed up third-quarter profit growth estimates to 23.6 percent from 21.8 percent in the last 10 days.

The Dow Jones Industrial Average rose 401 points, or 1.6 percent, to 24,984.

In New York, the futures contract for the S&P 500 gained 0.7 per cent to 2,684 while that for the Dow also rose 0.6 per cent, to 24,770, suggesting recent losses may have whetted appetites for bargains. Amazon sank 8.5 percent to $1,632.79 while Alphabet slid 4.9 percent to $1,047.62. Google-owner Alphabet was down 5.5 per cent at one point after it too missed analyst estimates on revenue growth.

Friday saw the American stock market collapse with the S&P 500, Nasdaq Composite Index and Dow Jones all collapsing massively.

The Dow tumbled 608.01 points, or 2.4 percent, to 24,583.42.

Ford Motor, which is struggling with sales in China, surged 7.4 percent as its earnings report raised hopes for a strong finish to the year, while Raytheon was up 1.2 percent after the USA defence contractor raised its full-year forecast. Japanese telecoms and energy giant Softbank lost 4.4 percent.

The S&P 500 index fell 70 points, or 2.6 percent, to 2,634. Australia's S&P/ASX 200 gave up 0.4 percent to 5,640.60.

The Nasdaq tumbled almost 3 percent. Semiconductor maker Tokyo Electron lost 4 percent and Taiwan Semiconductor Manufacturing Co. dropped 4.4 percent.

Hamilton claims fifth F1 world title as Verstappen wins in Mexico
And Mercedes had a pre-recorded message from another celebrity to once again mark the 33-year-old Brit's achievement. But I didn't pay attention in maths so I didn't check the numbers, and you try to hang in there as long as you can.

"In one line: Strong GDP growth hides soft capex and massive trade deterioration", said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Stock trading turned volatile in October after a placid summer, with big sell-offs in the sectors that have powered the bulk of the gains during the market's long bull run.

Texas Instruments fell 8.2 percent to $92.01 after the chipmaker delivered quarterly results that fell short of Wall Street's forecasts, noting that demand across most markets is slowing.

Alec Young, managing director of Global Markets Research at FTSE Russell, said various macroeconomic barriers have contributed to the overall decline in the stock market after reaching highs earlier this year.

"I think the Hong Kong market is really very close to bottom, because when you look at the value, it's very extremely cheap". Brent crude, used to price worldwide oils, declined 72 cents to $75.45 a barrel.

Germany's DAX fell 0.7 percent, while the CAC 40 in France lost 0.3 percent. Silver dropped 0.8 percent to $14.68 an ounce.

CURRENCIES: The dollar fell to 112.17 yen from 112.43 yen.

Trader Jeffrey Vazquez, center, works on the floor of the New York Stock Exchange, Friday, Oct. 26, 2018. Copper dipped 0.1 percent to $2.75 a pound. The fall came after the online retailer and cloud computing heavyweight reported that its quarterly net sales rose to $56.58 billion from $43.74 billion a year earlier.

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