Asia report: Hong Kong leads losses on mixed day for region

The special administrative region of China’s bourse was led lower by healthcare and cyclical consumer stocks.

“Asian stock markets faced sharp declines on Friday, driven by concerning signals from US corporate earnings and ambiguous outcomes from several central bank meetings, which left key questions about the global economy unresolved,” said TickMill market strategy partner Patrick Munnelly.

“In Hong Kong, technology stocks came under heavy selling pressure, dragging a major index down by over 3% after a recent rally.

“A broader index tracking Chinese stocks in the city was headed for its steepest two-day drop of the year.”

Munnelly noted that US futures indicated modest declines as well, adding that investors in Asia were grappling with an increasingly uncertain global economic outlook, as worries over tariffs and disappointing corporate earnings weighed on sentiment.

“US president Donald Trump announced that both broad-based reciprocal tariffs and targeted sectoral tariffs would take effect on 2 April, further heightening risks to the global economic environment.

“Attention is now shifting to upcoming earnings reports from major Chinese companies, including Xiaomi, Tencent, and e-commerce leader Meituan, which are set to release their financial results soon.

“Meanwhile, US-listed shares of PDD Holdings rose after the company exceeded earnings expectations, though it acknowledged challenges stemming from mounting global uncertainties.”

Markets mixed as Hong Kong leads the losses

The Hang Seng Index led regional declines, falling 2.19% to 23,689.72, weighed down by steep losses in healthcare and consumer cyclical stocks.

BYD tumbled 7.69%, while Semiconductor Manufacturing International Corporation and CSPC Pharmaceutical Group dropped 7.49% and 6.37% respectively.

In mainland China, sentiment was also negative - the Shanghai Composite shed 1.29%, while the Shenzhen Component slid 1.76%.

Losses were particularly deep among small-cap and speculative stocks, with Thinker Agricultural Machinery, Leysen Jewellery, and Fujian Furi Electronics all plunging over 10%.

Japanese markets were more mixed - the Nikkei 225 dipped 0.2% to 37,677.06, pulled lower by weakness in semiconductor and industrial names such as Sumco, IHI Corporation, and M3.

However, the broader Topix index managed a 0.29% gain, reflecting strength in other sectors.

South Korea’s Kospi 100 advanced 0.58% to 2,679.65, buoyed by strong performances in the industrials and energy sectors.

Doosan Enerbility and Posco Daewoo Corporation both rallied more than 5%.

Australia’s S&P/ASX 200 edged up 0.16% to 7,931.20.

Gains were driven by retail stocks following a report from the national competition regulator that highlighted strong profit margins at grocery giants Coles and Woolworths.

Woolworths jumped 6.32%, while Coles climbed 4.85%.

New Zealand also ended higher, with the S&P/NZX 50 rising 0.49% to 12,113.54.

SkyCity Entertainment Group surged 7.63%, leading the market in Wellington.

Currency markets saw the dollar strengthening 0.34% on the yen to trade at JPY 149.20, as it advanced 0.14% against the Aussie to AUD 1.5888.

The greenback was, however, 0.02% weaker on the Kiwi, changing hands at NZD 1.7365.

In commodities, oil prices were little changed, with Brent crude futures last up 0.1% on ICE to $72.07 per barrel, and the NYMEX quote for West Texas Intermediate gaining 0.16% to $68.18.

Consumer inflation eases in Japan, Aussie watchdog calls for grocery sector reform

In economic news, Japan's consumer inflation eased slightly in February, with headline prices rising 3.7% year on year, down from January’s two-year high of 4%.

Core inflation, which excludes volatile fresh food prices, slowed to 3%, compared to 3.2% the prior month.

While softer, the core figure remained above the 2.9% median forecast from economists polled by Reuters, underscoring persistent price pressures even as the pace moderated.

The data followed the Bank of Japan’s decision earlier this week to keep interest rates unchanged, maintaining a cautious stance as it monitored the inflation trajectory and wage trends.

In Australia, the national competition regulator called for sweeping reforms in the grocery sector, citing concerns over rising prices and a lack of transparency.

In a detailed 441-page report, the Australian Competition and Consumer Commission (ACCC) recommended 20 measures aimed at increasing competition and protecting consumers.

Among them was a proposal requiring supermarkets to disclose when product sizes were reduced without corresponding price cuts - a practice known as ‘shrinkflation’.

The ACCC noted that grocery prices had risen 24% over the past five years, with Coles and Woolworths among the most profitable supermarket operators globally.

Reporting by Josh White for Sharecast.com.