“Unfortunately this is the beginning. I think that when we get sentiment shifts like these, they always last longer than we would like to see and we could see the selling continue for some time,” she added.
Markets in Asia tumbled on Thursday morning, following in the footsteps of Wall Street which shrugged off several positive earnings reports amid fears that the ongoing tariff fight will dent business profitability in 2019.
Adding to the bad news in Asia, South Korea missed forecasts in its third-quarter growth. The economy expanded by 2 percent year-on-year in the July-to-September quarter, below the 2.2. percent expected by analysts polled by Reuters.
South Korea’s export-oriented economy is threatened by a slowdown in global trade amid rising tensions between the U.S. and China.
South Korea is not the only Asian economy that relies on trade, so its disappointing growth is seen by some analysts as a barometer for the worsening outlook across the region.
“We ought to keep an eye out across the region given this weakness. Taiwan and Singapore share some, though not all, of (South) Korea’s economic characteristics,” Robert Carnell, ING’s chief economist and head of research for Asia Pacific, wrote in a Thursday note.
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