Asian Markets Mostly Lower On Recession Worries


(RTTNews) – Asian stock markets are trading mostly lower on Wednesday, following the broadly negative cues overnight from Wall Street, after weak US consumer confidence data stoked fear among investors about the risk that higher interest rates and persistent inflation could trigger a recession. Asian Markets closed mostly higher on Tuesday.

A survey showed a measure of US consumer confidence deteriorated to its lowest level in over a year in June on surging inflation.

The Australian stock market is sharply lower on Wednesday, giving up some of the gains in the previous four sessions, with the benchmark S&P/ASX 200 falling below the 6,700 level, following the broadly negative cues overnight from Wall Street, dragged by gold miners and technology stocks, which mirrored their peers on tech-heavy Nasdaq amid discouraging US consumer confidence data.

The benchmark S&P/ASX 200 Index is losing 70.40 points or 1.04 percent to 6,693.20, after hitting a low of 6,666.40 earlier. The broader All Ordinaries Index is down 83.10 points or 1.20 percent to 6,870.30. Australian stocks ended significantly higher on Tuesday.

Among major miners, Rio Tinto and BHP Group are edging down 0.5 percent each, while OZ Minerals is losing more than 2 percent. Fortescue Metals is gaining more than 1 percent and Mineral Resources is flat.

Oil stocks are higher. Beach energy is surging more than 4 percent, Woodside Energy is gaining 2.5 percent and Santos is adding almost 1 percent, while Origin Energy is flat.

In the tech space, Afterpay owner Block and Zip are plunging more than 6 percent each, while Appen is slipping 5.5 percent, WiseTech Global is losing almost 3 percent and Xero is declining more than 5 percent.

Among the big four banks, National Australia Bank and Westpac are edging up 0.4 percent each, while ANZ Banking is gaining almost 1 percent. Commonwealth Bank is edging down 0.4 percent.

Among gold miners, Gold Road Resources and Evolution Mining are losing more than 4 percent each, while Resolute Mining is declining more than 5 percent, Northern Star Resources is sliding almost 5 percent and Newcrest Mining is down more than 3 percent.

In other news, shares in Liontown Resources are soaring almost 10 percent after it inked a 5-year lithium supply deal with Ford Motor.

In economic news, the value of retail sales in Australia was up a seasonally adjusted 0.9 percent on month in May, the Australian Bureau of Statistics said on Wednesday – coming in at A$34.229 billion. That beat expectations for an increase of 0.4 percent and was unchanged from the April reading.

In the currency market, the Aussie dollar is trading at $0.691 on Wednesday.

The Japanese stock market is sharply lower on Wednesday, giving up some of the gains in the previous four sessions, with the Nikkei 225 staying above the 26,700 level, following the broadly negative cues overnight from Wall Street, dragged by exporters and technology stocks, which mirrored their peers on tech-heavy Nasdaq amid discouraging US consumer confidence data.

The benchmark Nikkei 225 Index closed the morning session at 26,759.99, down 289.48 points or 1.07 percent, after hitting a low of 26,687.47 earlier. Japanese stocks closed modestly higher on Tuesday.

Market heavyweight SoftBank Group is losing almost 2 percent and Uniqlo operator Fast Retailing is down almost 1 percent. Among automakers, Honda is edging up 0.5 percent, while Toyota is losing almost 1 percent.

In the tech space, Screen Holdings is losing almost 3 percent, Tokyo Electron is declining 3.5 percent and Advantest is down almost 3 percent.

In the banking sector, Mizuho Financial is edging up 0.5 percent and Mitsubishi UFJ Financial is edging up 0.2 percent, while Sumitomo Mitsui Financial is edging down 0.3 percent. Among the major exporters, Sony is losing more than 2 percent, Canon is declining almost 3 percent, Mitsubishi Electric is edging down 0.2 percent and Panasonic is down almost 1 percent.

Among the other major losers, Kawasaki Kisen Kaisha is slipping almost 5 percent, while Taiyo Yuden, Murata Manufacturing and Yaskawa Electric are losing more than 3 percent each. Nippon Yusen KK and Showa Denko KK are declining almost 3 percent each.

Conversely, Tokyo Electric Power is surging more than 5 percent and Japan Steel Works is gaining 3.5 percent.

In economic news, the value of retail sales in Japan was up 3.6 percent on the year in May, the Ministry of Economy, Trade and Industry said on Wednesday – coming in at 12.388 trillion yen. That exceeded expectations for an increase of 3.3 percent following the upwardly revised 3.1 percent increase in April (originally 3.0 percent). On a seasonally adjusted monthly basis, retail sales rose 0.6 percent, slowing from 1.0 percent in the previous month. In the currency market, the US dollar is trading in the 136 yen-range on Wednesday.

Elsewhere in Asia, South Korea and Hong Kong are down 1.6 and 1.2 percent, respectively. New Zealand, China, Taiwan and Indonesia are lower by between 0.4 and 0.8 percent each. Meanwhile, Singapore and Malaysia are up 0.2 percent each. On Wall Street, stocks showed a substantial move to the downside during trading on Tuesday, coming under pressure after failing to sustain an early upward move. The major averages all moved notably lower, with the tech-heavy Nasdaq posting a particularly steep loss.

The major averages finished the session just off their worst levels of the day. The Dow tumbled 491.27 points or 1.6 percent to 30,936.99, the Nasdaq plummeted 343.01 points or 3 percent to 11,181.54 and the S&P 500 plunged 78.56 points or 2 percent to 3,821.55.

Meanwhile, the major European markets moved to the upside on the day. While the UK’s FTSE 100 Index increased by 0.9 percent, the French CAC 40 Index and the German DAX Index rose by 0.6 percent and 0.4 percent, respectively.

Crude oil prices rose sharply on Tuesday, extending recent gains after Saudi Arabia and the United Arab Emirates indicated that they can barely increase oil production. West Texas Intermediate crude oil futures for August ended higher by $2.19 or 2 percent at $111.76 per barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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