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You are here: GBC Business News Slumping China Economy, Oil Prices Send Asian Markets Lower

Slumping China Economy, Oil Prices Send Asian Markets Lower


2016-01-20 11:30

Asian stock prices took another dive Wednesday, thanks to further drop in global oil prices, China's economic slowdown and a pessimistic outlook for the overall global economy this year.

Tokyo's Nikkei index officially entered bear market territory after losing nearly four percent by the end of the trading day, while the Hang Seng in Hong Kong dropped 3.5 percent and South Korea's Kospi lost 2.3 percent.

China's Shanghai index and Australia's ASX/S&P 200 each fell 1.3 percent on Wednesday.

Investors are turning pessimistic after three rounds of bad news this week, starting with China's announcement Tuesday that its economy grew 6.9 percent in 2015, its slowest full-year growth in 25 years, followed by International Monetary Fund's decision to lower its global economic growth forecast for 2016 to 3.4 percent, 0.2 percent lower than its previous estimate.

A further blow came when prices for U.S. oil fell below $28 a barrel, the lowest mark in 12 years, after the International Energy Agency issued a report warning that global oil markets could "drown in oversupply" as demand pluNews provided by VOA.

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