The rates of Asian stock fell as the inflation rate in China rose above the predicted levels. The MSCI Asia Pacific Index dropped by 0.5% to 135.82 in this week. The rate of inflation in China is growing constantly since 2008. The inflation rate exceeded the estimated 9.4% percent increase in gross domestic product and price increases at a rate of 5.2%.
The investors were quiet disappointed by the decline in rates because there was an uncertainty in the market from long time. Ikuo Mitsui, who helps managing $270 million at Vivace Capital Management Co., said that disturbance in Japanese market could affect the global economy. The Japan’s Nikkei 225 (NKY) Stock Average fell by 1.8% as the government elevated the severity rating of its post-earthquake nuclear crisis to the highest level.
The Hong Kong’s Hang Seng Index (HSI) also dropped by 1.6% whereas the China’s Shanghai Stock Exchange Composite Index rose by 0.7%. Benjamin Tam, a Portfolio Manager at IG Investment Ltd., which oversees about $1.98 billion, said that the economic growth of china is still healthy. The overall market situation is optimistic because of the stronger growth.
