Asian stocks declined on Monday following another day of pro-democracy protests in Hong Kong. Protesters continued to block the roads around the city, staging one of the biggest demonstrations since Tianamen Square. The protests coincided with long-standing fears about China’s economy and missed estimates about the Chinese manufacturing gauge.
The MSCI Asia Pacific Index fell 0.9 percent just after noon on Monday while the Hang Seng Index fell 1.4 percent, hitting a three month low and pointing towards the largest drop since February. Chinese shares were slightly less bothered with both the .SSEC and the .CSI300 remaining steady.
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On Wall Street, analysts are split about whether the protests will have a long-term impact on the markets. Optimists believe have speculated that it may be possible for the financial industry to function despite the protests and expressed skepticism about China compromising Hong Kong’s role as a major trade station for mainland China. Pessimists are concerned about how European weakness and soft Chinese growth will negatively impact the global markets, especially as the US economy continues to strengthen.
While things remained stable at best in the Far East, the US dollar hit near a four-year peak against the Japanese yen on Monday, trading at 109.37. The strong dollar has already proven to have a direct impact on the commodities market, making commodity prices significantly more expensive for those using other currencies. Spot gold (XAU) was down to $1,216.70 per ounce yesterday, while US crude oil shifted to $94.34 per barrel. Brent remains close to its two-year low.