Business Standard - Stock pickers in some of Asia's key markets are being pounded by a series of extreme weather events, from heatwaves to flooding, signalling the difficulties ahead as El Nino-related risks rise and climate change accelerates. Read more
Extreme weather has always been part of the cost of doing business by the frequency of such events is increasing.
The volatility linked to them isn't limited to just Asia, but it certainly the region where the impact on stock markets has been outsized so far this year.
India's hottest February in more than a century, following a spike in cattle deaths caused by a viral skin disease, fueled a rare drop in dairy production in the world's largest milk-producing nation. With more heat waves forecasts alongside peak summer demand, shares of dairy firm such as Parag Milk Foods Ltd. and Heritage Foods Ltd. are soaring.
In resource-rich Australia, Nerwcrest Mining Ltd.'s Telfer gold mine was closed earlier this month and the company's shares fell from more than a two-year high after the biggest cyclone to hit the Western Australian coast in almost a decade made landfall.
Researchers and analysts who track the impact of these events have a message for traders struggling with stock swings: Get used to them.
The possibility of an El Nino weather pattern forming - typically signaled by higher-than- normal water temperatures in the Eastern Pacific, means hotter and drier conditions for Asia and Australia.
Shares of Thailand's agricultural firms, drinks manufacturers and related companies have also become a focus after a local report flagged exactly those conditions for the Southeast Asian nation in the coming months.
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