Asia report: Markets follow Wall Street onto downward slope
Markets in Asia were in negative territory at their respective closes on Wednesday, after rising concerns about a possible global slowdown and ever-present trade tensions fuelled a red Tuesday on Wall Street overnight.
AUD/USD
$0.6535
12:30 26/04/24
GBP/NZD
NZD2.1024
12:30 26/04/24
Hang Seng
17,651.15
10:20 26/04/24
Nikkei 225
37,934.76
09:44 26/04/24
USD/JPY
¥156.7345
12:30 26/04/24
In Japan, the Nikkei 225 was down 0.53% at 21,919.33, as the yen weakened 0.2% against the dollar to last trade at JPY 113.0.
The broader Topix index was 0.53% lower at 1,640.49 in Tokyo.
Financial plays were pulled under in the country, with Mitsubishi UFJ Financial Group down 0.88% and Nomura off 3.28%.
On the mainland, the Shanghai Composite weakened 0.61% at 2,649.81, and the smaller, technology-heavy Shenzhen Composite ended the day 0.48% weaker at 1,380.78.
In fresh economic data out of China, the unofficial Caixin Services Purchasing Managers’ Index delivered its highest reading in five months, sitting at 53.8 for November.
That was a decent improvement from the 50.8 figure published for October.
Trade tensions between Beijing and Washington were also high on the agenda in the People’s Republic, with the Ministry of Commerce describing a weekend meeting between Xi Jinping and Donald Trump as a success.
It followed two days of confusion, as analysts dissected differences in the way each country’s administration described the meeting’s outcome and expressed concern that it would lead to anything concrete at all.
The Ministry of Commerce also said it would press on with negotiating with the US in the next 90 days - the length of the trade war ceasefire agreed by Xi and Trump.
South Korea’s Kospi lost 0.62% to 2,101.31, while the Hang Seng Index in Hong Kong dropped 1.62% to 26,819.68.
Chinese carmaker BAIC Motor plunged 11.31% in Hong Kong trading, after Bloomberg published a report that German auto giant Daimler was considering upping its share in its joint venture with BAIC.
Oil prices were mixed, with Brent crude last down 0.34% at $61.87 per barrel, and West Texas Intermediate unchanged at $53.25.
In Australia, the S&P/ASX 200 was 0.78% below the waterline, closing at 5,668.40, after economic data disappointed market watchers in the sunburnt country.
Real gross domestic product expanded 0.3% quarter-on-quarter in the third quarter to 30 September, the Australian Bureau of Statistics reported, and by 2.8% year-on-year.
According to a Reuters poll of economists, markets had been anticipating readings of 0.6% and 3.3%, respectively.
The country’s hefty financials sector performed poorly in Sydney trading, with Australia and New Zealand Banking Group down 0.72%, Commonwealth Bank of Australia off 1.13%, National Australia Bank declining 0.82%, and Westpac Banking Corporation sliding 1.16%.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 declined 1% to 8,781.53, led lower by Fisher & Paykel Healthcare, which was down 3.5%.
The region’s big banks were also under pressure on the Wellington bourse, with Australia and New Zealand Banking Group down 2.3% there, and Westpac Banking Corporation off 2%.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.59% at AUD 1.3709, and the Kiwi retreating 0.09% to NZD 1.4444.