Low Trend of Asian Stocks Following a Promising Three-Week Rally

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Low Trend of Asian Stocks Following a Promising Three-Week Rally
Low Trend of Asian Stocks Following a Promising Three-Week Rally

The trends of Asian stocks observed on Wednesday reported to be trading lower after a noticeable rally for three weeks. The Shanghai Composite dropped 0.73%, while Hong Kong’s Hang Seng slid 0.68%. The Asian trading also witnessed the Nikkei in Japan falling 0.51% subsequent to the USD/JPY trading much lower. Japanese exports were held at a weak position by the vaguely strong trends of the yen. However, traders are also noting that the USD/JPY is not disturbingly lower and the pair is still moving in the vicinity of its highest levels observed in almost four years. Singapore’s Straits Times Index is recorded to be off 0.40% and the S&P 500 futures are trading low by 0.01%. Following the statement by Statistics Korea that the country’s unemployment rate had increased to 4% previous month from a position of 3.4% in January, South Korea’s Kospi dropped 0.02%.

Japanese exports also registered declining trends, as industry giants, Canon and Panasonic recorded lows. Positioned as Japan’s second largest maker of televisions, Panasonic Corp. fell 2.6% to a value of 683 yen, and Canon dropped 2% to a value of 3,480 yen.

Australia’s S&P/ASX 200 Index went low 0.50% following the statement from Australian Bureau of Statistics indicating that Australian home loans confirmed in with a calculation of -1.5% in the month of February. The reading noted in January was revised to a position of -1.5% from -2.1%. There was a general expectation among analysts for a February reading of 0.6%. In related news, following the report related to home loans, another uninspiring Australian data point was announced on Tuesday, with the National Bank of Australia stating that its index of business confidence had moved low to a reading of 1 in the month of February from a value of 3, which was noted the preceding month.

New Zealand’s NZSE 50 dropped 0.70% on concerns that an aggravating drought there will hinder the economy. News related to the drought, which is considered to be getting worse by the day by some market participants, corresponds with a meeting of the Reserve Bank of New Zealand scheduled for later in the day. Traders far and wide anticipate the central bank to maintain interest rates untouched at 2.5%.