At the start of trading on Monday, Japanese shares fell to a one-year low following huge declines in the US share prices and as world oil prices fell below $28 a barrel. This is the first time since 2003 that oil has fallen this low.
Japanese Shares Hit One-Year Low Following Big Falls In US Oil Prices
The Nikkei 225 closed at 16,955.57, the lowest in close to a year. The index lost 191 points, a 1% low. This marks a 19% off the Index’s recent high set in August. The index will enter a bear market soon as it loses 20%.
Investors in Australia reacted to the drop in oil prices as well with the S&P/ASX 200 closing at a low of 0.7% at 4,858.70 as stock in banking and the energy sector impact on the market.
Shares at Santos, Woodside and BHP Billiton fell 8.4%, 2.6% and 3% respectively.
The biggest lenders in Australia also saw their shares fall on Monday with ANZ shares declining 2% while Westpac fell 1%.
The Kospi Index in South Korea closed at 1,878.45 following a day spent in intense market turmoil.
Analysts in China anticipate that the markets will continue to experience much pressure throughout the week due to falling oil prices coupled with the country’s slow economic growth.
The latest data on China’s quarterly gross domestic product are expected to be announced on Tuesday.
On Monday, data on housing indicated that house prices in China increased by 1.6% at the end of last year. The country’s housing market contributes to 15% of the economy. The 1.6% increase in prices mark year on year profits for a third year consecutively.
In Hong Kong, the Hang Seng index closed by a 1.5% low at 19,237.45 while the Shanghai Composite closed at a high of 0.44% at 2,913.84.