2014.07.0700:28:58UTC+00Asian shares stall on absent US stimulus

Asian shares are steady in the opening session on Monday on absent stimulus from any economic event and the US holiday on Friday of the previous week.

Over the weekend, Monetary Fund chief Christine Lagarde addressed the market and advised market participants that there is a reasonable chance of a weaker global growth pace for the second half of the year. She says that the cautious mood of the market is due to weak investment. Lagarde adds that she does not see China ending in a hard landing.

The MSCI Asia Pacific Index is down by 0.1% to 147.44, 9:42 am, Hong Kong time. Eight out of ten industries in the index fell. The slight decline is still due to Monetary Fund leader Christine Lagarde’s speech on global forecasts that indicates a cut in the growth and that the US still has weak investments and there are still risks despite the recovery the world’s biggest economy is going through.

Japan’s Nikkei 225 Index and South Korea’s KOSPI Index are down by 0.05% or 7.21 pips to 15,429.92 and 0.55% or 11.02 pips to 1,998.64 respectively. Hong Kong’s Hang Seng Index and China’s Shanghai Composite Index lost by 0.39% or 91.32 pips to 23,453.49 respectively. Australia’s S&P/ASX 200 and the CNBC ASIA IDX also declined by 0.15% or 8.48 pips to 5,516.50 and 0.25% or 18.56 pips to 7,466.71 respectively.

Market strategist Stan Shamu commented that the previous week was a vital week of sessions for the global markets as it significantly lifted the world markets’ mood. Shamu adds that due to this, the effects of the events will linger and that there’s a good chance that the momentum from last week’s high will continue for the upcoming sessions up until new stimulus comes from the US.