Asia report: Markets fall as Covid concerns linger
Stock markets in Asia finished mostly lower on Wednesday, as investors digested the latest retail sales data out of Australia and kept an eye on the Covid-19 situation in the region.
In Japan, the Nikkei 225 was down 2.03% at 28,508.55, as the yen strengthened 0.03% against the dollar to last trade at JPY 108.08.
Technology conglomerate SoftBank Group was up 1.03%, while among the benchmark’s other major components, automation specialist Fanuc was down 3.4% and fashion firm Fast Retailing was off 1.97%.
The broader Topix index slid 1.98% by the end of trading in Tokyo, settling at 1,888.18.
On the mainland, the Shanghai Composite slipped 0.0004% to 3,472.93, as the smaller, technology-heavy Shenzhen Composite managed gains of 0.2% to 2,277.21.
South Korea’s Kospi was off 1.52% at 3,171.66, while the Hang Seng Index in Hong Kong lost 1.76% to 28,621.92.
The blue-chip technology stocks were weaker in Seoul, with Samsung Electronics down 1.55% and SK Hynix sliding 4.33%.
“For now the threat of rate rises to combat inflation looks very remote and the falls in Asia and the US overnight are a reminder that a more pressing issue, Covid-19, hasn’t gone away,” said AJ Bell investment director Russ Mould.
“The world still faces a big challenge in containing the virus and it is no surprise to see travel stocks under some of the most severe pressure given the disparity in different countries’ experiences with Covid.”
Oil prices were lower at the end of the Asian day, with Brent crude last down 1.22% at $65.76 per barrel, and West Texas Intermediate falling 1.32% to $61.84.
In Australia, the S&P/ASX 200 was 0.29% weaker at 6,997.50, as fresh data showed retail sales beating forecasts in March.
Shoppers in the sunburnt country bought 1.4% more than they did in February, according to the Australian Bureau of Statistics, which was ahead of the 1% anticipated by analysts in a Reuters poll.
The major retailers were mixed in Sydney, however, with Wesfarmers up 0.67% and Woolworths Group rising 0.26%, while Coles Group lost 0.06%.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 lost 1.13% to 12,535.34, led lower by retirement property developer Ryman Healthcare, which was 3.7% weaker.
The down under dollars were in a mixed state against the greenback, with the Aussie last weaker 0.06% at AUD 1.2955, while the Kiwi strengthened 0.11% to NZD 1.3928.