Asia report: Markets weaker as growth concerns simmer
Markets in Asia were in the red on Thursday, as concerns around a slowing global economy continued to grow, and after the United States announced a fresh set of tariffs to be applied to imports from the European Union.
In Japan, the Nikkei 225 was down 2.01% at 21,341.74, as the yen strengthened 0.24% against the dollar to last trade at JPY 106.92.
Of the major components on the benchmark index, automation specialist Fanuc was down 2.62%, fashion firm Fast Retailing lost 3.89%, and technology conglomerate SoftBank Group slid 2.02%.
The broader Topix index was 1.72% weaker, closing the session in Tokyo at 1,568.87.
Markets in mainland China remained closed for the country’s ongoing holiday celebrating the anniversary of communist rule, while South Korean traders also enjoyed a day off for the Gaecheonjeol holiday.
Hong Kong’s Hang Seng Index went against the trend, finishing 0.26% firmer at 26,110.31.
Retail sales in the special administrative region plummeted to their lowest levels ever for August, according to fresh data released on Thursday, as the city continued to be rocked by ongoing politically-motivated protest.
Retailers were mixed on the news, however, with Hong Kong-listed shares in Prada losing 0.89%, while Chow Tai Fook Jewellery Group rose 1.25% and Sa Sa International improved 4.12%.
Concerns that Washington was opening up a new front in its ongoing global trade battle emerged on Thursday, after the Office of the US Trade Representative announced tariffs on European Union goods, to be imposed from 18 October.
It came amid the ongoing trade war between the US and China, with officials from those two economic superpowers set to meet in Washington next week.
Beijing and Washington have been engaged in a tit-for-tat battle of punitive tariffs for more than 12 months, with analysts having little hope for a resolution anytime soon.
Oil prices were mixed as the region went to bed, with Brent crude last down 0.1% at $57.63 per barrel, and West Texas Intermediate unchanged at $52.64.
In Australia, the S&P/ASX 200 slid 2.21% to close its trading day at 6,493.00, with the hefty financials subindex down 2.61%.
That was led by declines across the country’s big four banks, with Australia and New Zealand Banking Group down 2.67%, Commonwealth Bank of Australia off 2.84%, National Australia Bank losing 3.51%, and Westpac Banking Corporation 2.43% weaker.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was off 1.2% at 10,821.21, led lower by rubber products conglomerate Skellerup, which was off 4.9% as it went ex-dividend.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.24% at AUD 1.4873, and the Kiwi advancing 0.43% to NZD 1.5882.