Markets in Asia were sliding Monday, looking ahead to what’s expected to be a rough day for global stocks after the deadly terrorist attacks in Paris.
At least 129 people were killed, and more than 350 wounded, on Friday in the worst attacks France has experienced since World War II.
Asian markets were broadly lower, led by a 1.6% fall in Hong Kong afternoon trading. Korea’s Kospi declined by 1.5%, while Japan’s Nikkei and Australia’s ASX All Ordinaries lost about 1% on Monday.
Airline stocks in particular took a beating. Virgin Australia lost 6.5%, Taiwan’s Eva Airways dropped 5.4% and Cathay Pacific shed 2%.
Stocks in Japan fell after the government said the economy contracted by an annualized 0.8% in the third quarter. The report officially puts Japan back into recession.
Even still, Japan’s central bank is unlikely to announce more stimulus at the end of a policy meeting this week, Marcel Thieliant of Capital Economics wrote in a research note. Any such announcement isn’t expected until early next year, he said.
The Asian stocks slump Monday followed a sharp drop in Middle East markets during Sunday trading.
The Saudi Arabia Tadawul index dropped 2.8%, while Dubai DFM closed 3.7% lower. Egypt’s benchmark EGX index lost 4.2% on Sunday.
In France, the benchmark Paris CAC is set to open as normal on Monday, but under heightened security.