RTTNews - The Asian markets ended in the negative territory on Wednesday following weak cues from Wall Street where the major indices ended sharply lower despite better-than-expected economic data. Except the markets in China and Taiwan, all the other major markets ended in the negative territory. Traders preferred to lock in gains and move to the sidelines as the rally seems to be losing steam.
In Japan, the benchmark Nikkei 225 Index ended at 10,280, representing a loss of 249.60 points, or 2.40%, while the broader Topix index of all first section stocks fell 18.96 points, or 2%, to 949.
On the economic front, the Bank of Japan stated that the monetary base in the country rose 6.1% year-over-year in August to 93.3 trillion yen. Banknotes in circulation were up 0.5% on year, while coins in circulation eased 0.2% year-over-year.. Current account balances surged 64.6% on year, including a 56.2% reserve balance. Seasonally adjusted, the monetary base climbed 3.6% to 94.19 trillion yen - up from 93.91 trillion yen in July.
Financial stocks led the decline on concerns about the pace of recovery in the global economy. Mitsubishi UFJ Financial declined 2.52%, Mizuho Financial slumped 3.10%, Resona Holdings lost 1.26% and Sumitomo Mitsui Financial fell 2.74%.
Energy stocks also ended weaker following drop in crude oil prices in the international market on Tuesday. Nippon Oil Corp fell 2.22%, Nippon Mining Holdings lost 2.77% and Showa Shell lost 2.65%.
Retailers also ended in negative territory after Seven & I Holdings cut its earnings outlook for the full year. The stock price declined 2.69%. Among other retailers, Fast Retailing slumped 3.14%, Aeon plunged 4.52% and J Front Retailing lost 2.00%.
Trading companies also ended weaker following the strengthening of the local currency against the US dollar and weaker commodity prices. Inpex Corp., plunged 4.33%, Toyota Tsusho Corp slumped 3.96%, Mitsubishi Corp. declined 2.40%, Mitsui & Co., fell 2.40%, and Sumitomo Mitsui Corp. lost 2.74%.
Exporters and automakers ended lower following the strengthening of the local currency against the US dollar. Canon lost 2.78%. Toyota Motor fell 2.49%, Honda Motor declined 2.02%, Isuzu Motors shed 2.23% and Mitsubishi Motor slipped 2.94%.
In Australia, the benchmark S&P/ASX200 Index declined 1.69% or 76.40 points to close at 4,438, while the All-Ordinaries Index ended at 4,437, representing a loss of 74.70 points, or 1.66%.
On the economic front, the Australian Bureau of Statistics revealed that the economy grew at a faster than expected pace in the second quarter, reflecting the recent optimistic outlook for the country's economy. The GDP rose a seasonally adjusted 0.6% on quarter in the second quarter, compared to the 0.4% growth reported in the first quarter. Economists had expected a more modest 0.2% growth. On a yearly basis, GDP was up 0.6% in the second quarter, exceeding analysts' expectation of a 0.3% increase.
Energy stocks declined the most following the sharp pull-back in crude oil prices in the international market on Tuesday. Woodside Petroleum declined 2.68%, Santos fell 2.15%, Oil Search slumped 3.48% and Origin Energy lost 2.71%.
Banks declined on expectations of interest rate hike following better than expected GDP numbers for the second quarter. ANZ Bank lost 3.73%, Commonwealth Bank of Australia declined 1.73%, National Australia Bank fell 3.05% and Westpac Banking shed 2.33%.
Metals and mining stocks also ended in negative territory following drop in commodity prices in the international market on Tuesday. BHP Billiton fell 1.74%, Fortescue Metals slumped 3.49%, Gindalbie Metals lost 2.48%, Oz Minerals shed 3.76% and Rio Tinto declined 2.20%.
Mixed trading was witnessed among the gold stocks. While Lihir Gold managed to end in positive territory with a modest gain of 0.72%, Newcrest Mining shed 0.57% and Sino Gold Mining declined 1.57%.
In Hong Kong, the Hang Seng Index ended in the negative territory with a loss of 350.30 points, or 1.76% at 19,522, following Wall Street cues where the major indices ended sharply lower despite positive economic data. Concerns about valuations of the stocks and sustainability of the recovery amid weak economic fundamentals made the traders pause for profit taking and move to sidelines awaiting further cues. Of the 42 components in the index, as many as 35 stocks ended in the negative territory.
In South Korea, the benchmark KOSPI Index ended at 1,613, down 9.90 points, or 0.61% as institutional investors dumped shares of blue-chips following cues from Wall Street where the major indices ended sharply lower despite positive economic data. Valuation concerns and worries about loss of steam in the rally impacted market sentiment.
The Indian market ended lower for the third straight session with relatively minor losses on Wednesday as weak opening of the European markets for the third straight session on renewed worries about the balance sheets of U.S. banks and apprehensions about stretched valuations weighed on market movement. The BSE Sensex ended at 15,467, down 84 points or 0.54% from its previous close, and the S&P CNX Nifty fell 17 points or 0.37% to 4,608.
Among the other major markets in the region, China's Shanghai Composite Index gained 1.16% or 31.25 points, to 2,715, and Taiwan's Weighted Index added 20.02 points, or 0.29% to close at 7,040. Indonesia's Jakarta Composite Index ended in the negative territory with a loss of 40.99 points, or 1.76% at 2,286 and Singapore's Strait Times Index lost 26.46 points, or 1.02% to close at 2,570.
For comments and feedback: contact firstname.lastname@example.org