On Tuesday, stocks in Asia slumped, except China, where stocks went up before a vital decision on whether to add securities to a powerful global benchmark or not.
Concerns regarding the UK’s probable exit from the European Union also weighed on financial markets. However, the mood appeared to be less dire than observed on Monday, with stock losses mostly moderate throughout the region. Furthermore, traders were awaiting in suspense before the outcomes of three major bank monetary gatherings in Japan, Great Britain and America.
Some financial analysts point out that it’s just the calm before the approaching storm in the financial markets.
Japanese Nikkei Stock Average closed down 1%, Korean Kospi sagged 0.4%, Australian S&P/ASX 200 tumbled 2.1%. As for the Hang Seng Index, it sank 0.6%, while the Shanghai Composite Index rose 0.3%.
The Shanghai Composite Index in China rebounced slightly from Monday’s 3.2% sell-off. Traders were awaiting a decision from index compiler Morgan Stanley Capital International, to be announced on Tuesday on whether to include Chinese-listed shares in it’s the Emerging Markets Index or not.