Most Asian stock market indices were trading lower on Friday, 22 April, including China's Shanghai Composite Index which was down 0.41% at 2,940.82 at 5.40am GMT. This followed a negative Wall Street close overnight amid weak revenues reported by some US companies.
JJ Kinahan, chief strategist at TD Ameritrade, an online broking company, said: "The S&P 500 is definitely weighed on by United, Travelers and Verizon. You have a few stocks that have had oversized (impact)." While Travelers, the American insurance company, reported earnings were down 10% from a year-ago, Verizon reported revenues that missed estimates.
The slide in Asian stocks comes after they touched their five and a half month high recently. Norihiro Fujito, senior investment analyst at Mitsubishi UFJ Morgan Stanley Securities, explained: "Essentially, global shares and commodities have been rallying since US Federal Reserve Chair Janet Yellen had indicated a dovish stance in March. But you would need more improvement in economic fundamentals for the rally to go further. The S&P 500 is quite overvalued, trading at 17.8 times the forecast profits. Disappointing earnings from hi-tech companies will surely cap the market."
Indices in the rest of Asia traded as follows on 22 April at 5.58am GMT:
|Hong Kong||Hang Seng Index||21,426.57||Down||0.90%|
Meanwhile, overnight (21 April), the Dow Jones Industrial Average closed at 17,982.52, down 0.63%, while the FTSE 100 closed lower by 0.45% at 6,381.44.
Oil performed better than shares. On 22 April, WTI crude oil was trading 1.51% higher at $43.83 (£30.53, €38.81) a barrel, while Brent was 1.41% higher at $45.16 a barrel at 6.12am GMT.