Asian Market Update – Tuesday: Cryptocurrencies tumble; Asian stocks rebound on economic data
The Big Question: Will we see bitcoin $10,000 by the end of the year?
Cryptocurrencies tumbled overnight during the Asian trading session on Tuesday, with bitcoin, ethereum and litecoin prices all falling more than four percent by midday.
Bitcoin dropped 4.23 percent to $7,877 before midday in Asia. The cryptocurrency took a dive on Tuesday morning after it reached a new high of about $8,250. However, bitcoin was showing signs of recovery later on Tuesday, though slowly.
The price of ethereum was down 4.07 percent to about $351 before midday in Asia. The virtual currency tracked bitcoin as it went into a free fall in early morning, dropping as much as 5.4 percent, or $20, at one point.
News reports suggest that betcoin.com’s mobile bitcoin wallet now automatically defaults to bitcoin cash. The move is the latest play in Roger Ver’s “bitcoin cash is bitcoin” campaign.
In other news, CME Group, the largest options exchange in the world, said it has set December 10 as the official launch date for bitcoin futures trading, as reported by CCN. Some analysts project the move as a primary force in a potential push for the bitcoin price over $10,000.
Main Market Movers – Mid-day Asian Trading Session
|Indexes||Value at Midday||Daily Change|
|Japan- Nikkei 225||22,467||0.93%|
|China-Shanghai Composite Index||3,405||0.4%|
|Hong Kong –Hang Seng||29,619||1.23%|
|S&P 500 E-Mini Futures||2,581||-0.01%|
Most major Asian equities markets were pointing higher on Tuesday morning, as investors digested recent upbeat forecasts of economic growth in Germany and the US that suggested a solid recovery in the global economy.
In Japan, the Nikkei 225 was up 0.93 percent to 22, 467 at midday on Tuesday.
On the Chinese mainland, the Shanghai Composite Index added 0.4 percent to about 3,405 before midday. In Hong Kong, the Hang Seng Index climbed 1.23 percent to around 29,619 before midday.
In South Korea, the Kospi added 0.2 percent to around 2,532 shortly before midday.
Down under, the ASX 200 was up 0.28 percent to 5,962.
The S&P 500 E-Mini Futures was down 0.01 percent to 2,581 at midday.
Germany’ central bank said on Monday that Europe’s largest economy is heading to a strong year powered by robust industrial activity. In the US, the Conference Borad’s main economic index grew 1.2 percent in October, double the rate polled by Reuters. In Japan, economic growth for the fourth quarter is expected to remain strong as external demand for Japanese exports is solid.
The Japanese yen gained 0.03 percent the US dollar at midday Tuesday to 112.583 per dollar.
The Chinese yuan lost 0.07 percent against the US dollar at 6.6344 per dollar.
The Australian dollar lost 0.18 percent on the dollar, changing hands at 1.3268 per dollar at midday.
WTI Oil was up 0.18 percent to $56.46 per barrel.
Brent Crude gained 0.18 percent to $62.27 per barrel.
Gold was up 0.28 percent to $1,279 an ounce.
Business News across Asia
On the Korean Peninsula, South Korea and Japan indicated that they welcome an announcement from the US government that it would designate North Korea as a state sponsor of terrorism. The trio, along with other players in the region, including Russia and China, are struggling to rein in North Korea’s nuclear advancement.
Take away: Though as of Tuesday, things remain calm on the Korea Peninsula, such a move form the US is highly likely to draw a response from the rogue nation.
Featured image from Pixabay.