Stock markets in the Asia-Pacific region fell following Fitch’s decision to downgrade the US long-term rating from AAA to AA+.
Fitch decision, which was announced just before markets opened in Asia, prompted investors to flee risky investments, that is, to sell off stocks and look for defensive assets, which are considered to be the Japanese yen and the Swiss franc.
However, this also seems questionable to some individuals, given the recent dynamics of the Japanese yen.
Thus Japan’s Nikkei index was dropping on August 2 by 2.46%, Hong Kong Stock Exchange index (Hang Seng Index, HSI) – by 2.23%, Shanghai (SSEC) – by 0.84%.
South Korea’s KOSPI index fell by 1.83%, Australia’s S&P/ASX 200 – by 1.17%.
This plunge in Asia-Pacific market indices was the biggest in almost a month.