Asian markets dive on Fed stimulus worries; Sensex cracks

Updated: Thursday, May 23, 2013, 11:30 [IST]

Asian markets plunged in trade today, as worries over the withdrawal of stimulus by the Federal Reserve in the US and weak PMI data in China saw huge selling pressure emerge. The Nikkei slid almost 6 per cent in trade today as JGB prices dived after a surge in US Treasury yields added to the woes of Japan's bond market. The other markets that saw a slide were the Hong Kong's Hang Sang, Singapore's Strait Times and the Korean Kospi. The Sensex too was down 1.25 per cent in late morning trade.

Japanese government bond prices dived, prompting the Tokyo Stock Exchange to temporarily suspend trade as the dollar hit a near three-year high versus a basket of currencies on Thursday.
Adding to the worries was factory data from China, which showed that manufacturing activity shrunk for the first time in seven months.

The BSE Sensex extended losses for the fourth session trading lower by 264 points, while the Nifty lost 92 points in trade. Heavy selling pressure was seen in Maruti, DLF, Ranbaxy Laboratories and NMDC. Software stocks managed to hold ground with prominent gainers being TCS and Infosys.

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