The day has been negative for Asian stocks fell thanks to declining Japanese and Hong Kong equities that put the regional indexes on track for the longest run of weekly losses in more than 18 months. In today’s trading, shares were mostly lower in Asia as weak Chinese manufacturing lingered over investors.
On the other hand, Japan’s stock market suffered from a rebound in the yen against its peer currencies like the USD. Japan’s Topix (TPX) index sank 1.8 percent. A similar pattern was seen in Euro Stoxx 50 Index futures and the Standard & Poor’s 500 Index which were little changed earlier in European trading.
The Nikkei 225 in Tokyo slipped 1.7 percent to 15,431.69 due to selling of export-related shares as the yen showed strength against the dollar and traded at 103.40. Japan is expected to come up with trade data for December this coming Monday. However, it can be a concern for investors as according to estimates it may show further widening of Japan’s deficit.
Market observers feel that as prices for import are rising in the country, it will affect deficit. On a slightly dismal trading day, Hong Kong’s Hang Seng shed 0.7 percent to 22,583.91. On the other hand, Seoul’s Kospi dropped 0.8 percent to 1,932.61. A similar pattern was seen in the stock markets of Australia, New Zealand, Singapore, Malaysia, Thailand and Indonesia.
China’s Shanghai Composite Index Slightly Up
Contrary to trend, China’s Shanghai Composite Index rebounded by 0.9 percent to 2,059.52. The index moved up despite the last day’s trade where its performance was affected thanks to the preliminary results of HSBC’s survey of Chinese factory purchasing managers in January. The report from HSBC warned investors about contraction the country may face ahead.
China which is facing a huge challenge of credit risk is also planning to tackle it well and for that the China Banking Regulatory Commission told regional offices to closely monitor credit risks from trust and wealth management products. The agency has also requested to monitor coal miners.
On the other hand, lackluster earnings and a rise in U.S. jobless claims had an impact on the indicators in the U.S. Whereas the Dow closed down 175.99 points, or 1.1 percent, at 16,197.35, the S&P 500 lost 16.40 points, or 0.9 percent, to 1,828.46.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org