Asia Markets Soak with Blood as Dow Loses All Its 2018 Gain, VIX Rise +100% in October
Following the loss in Wall Street last night, Asia markets are walking the same path as Wall Street did yesterday and every day in October. To make the situation even worse, VIX has been rising nonstop and already went above 100% this month.
On October 24, 2018, Dow Jones sunk more than 600 points in a continuous loss to erase all of its 20108 gains. The worst performer last night was Nasdaq, who just celebrated its new high last month, to plunge 4.4% and is now in correction territory. The S&P 500 was not in any better shape than the other two to slid 3% last night.
Worries about a slowing economy under pressure from rising interest rates grew after the Commerce Department reported new home sales fell to a two-year low. Bank shares also fell in fears of slowing growth for mortgage and other loans.
The kickoff in Asia markets sent bad signals to all investors in the region. At 9:05 a.m. in Thailand, NIKKEI tanked 3.30%, SSEC stumbled 2.03%, HSI slid 2.14%, ASX 200 fell 2.21% and KOSPI plunged 2.73%.
KTB Securities said that SET Index could have gone all the way down to 1,584 points, the same lowest point as June 29, 2018.
Investors have been grappling with increasing market volatility of late. The Cboe Volatility Index (VIX), widely regarded as the best gauge of fear in the market, closed at 25.23 points or 21.83% last night and is up more than 100% in October.