Asian markets are mostly down on global indices
Asian action markets are trading mostly lower on Tuesday, following broadly negative signals from global markets overnight, amid a sell-off on lingering concerns over the interest rate outlook and potential recession as traders anticipate the symposium Jackson Hole’s annual economic crisis in Wyoming on Friday, where U.S. Fed Chairman Jerome Powell is expected to adopt a more hawkish tone in his comments. Asian markets closed weakly on Monday.
Remarks by several Fed officials that the central bank needs to be aggressive with monetary tightening to rein in inflation also weighed on sentiment. Richmond Fed Chairman Thomas Barkin said central bankers were keen on faster and earlier interest rate increases even if it meant risking a U.S. economic recession. Aggressive monetary tightening by central banks in Europe added to the nervousness.
Australia’s stock market is slightly lower on Tuesday, extending losses from the previous session, with the benchmark S&P/ASX 200 index remaining above the 7,000 mark, following broadly negative signals from global markets overnight , with weakness in Technology and financial stocks as traders remain concerned about the outlook for interest rates and rising inflation.
The benchmark S&P/ASX 200 lost 38.40 points or 0.55% to 7,008.50, after hitting a low of 6,993.90 earlier. The broader All Ordinaries index is down 39.80 points or 0.55% at 7,247.40. Australian stocks closed significantly lower on Monday.
Among major miners, Rio Tinto was down 0.3%, while Mineral Resources gained more than 2%, BHP Group added more than 1% and Fortescue Metals was up 0.1%. OZ Minerals is flat.
Oil inventories are mostly higher, with Woodside Energy and Santos gaining more than 1% each, while Origin Energy adds almost 1% and Beach energy slightly up 0.1%.
Among tech stocks, Appen gained nearly 1% and WiseTech Global rose 0.3%, while Zip fell more than 3%, Xero lost nearly 1% and Afterpay owner Block fell 0. 5%.
Gold miners are mostly higher. Newcrest Mining and Gold Road Resources are up 0.4-0.5% each, while Evolution Mining gains more than 1%, Northern Star Resources is up more than 2% and Resolute Mining is up 3.5%.
Among the big four banks, Commonwealth Bank lost nearly 1%, while Westpac, ANZ Banking and National Australia Bank fell more than 1% each.
Elsewhere, Altium shares soared more than 19% after the PCB design software company reported upbeat full-year results along with a rising revenue outlook and final dividend.
In economic news, Australia’s manufacturing sector continued to expand in August, albeit at a slower pace, the latest S&P Global survey showed on Tuesday with a manufacturing PMI score of 54.5. This is down from 55.7 in July, although it remains above the 50 boom or bust line. The survey also showed that the services PMI fell into contraction, slipping to a score of 49.6 in August from 50.9 in July. The composite index also fell to 49.8 from 51.1 a month earlier.
In the currency market, the Australian dollar is trading at $0.690 on Tuesday.
Japan’s stock market is down sharply on Tuesday, extending losses from the previous three sessions, with the Nikkei 225 falling below the 28,500 level, following broadly negative signals from global markets overnight, with particular weakness from exporters, technology and financial stocks like traders remain concerned about the outlook for interest rates and rising inflation.
The benchmark Nikkei 225 closed the morning session at 28,456.92, down 337.58 points or 1.17%, after hitting a low of 28,395.30 earlier. Japanese stocks ended slightly lower on Monday.
The SoftBank group, heavyweight in the market, lost nearly 3% and the operator Uniqlo Fast Retailing was down nearly 1%. Among automakers, Honda and Toyota lost more than 2% each.
In technology, Advantest rose 0.4%, while Screen Holdings and Tokyo Electron lost nearly 1% each. In the banking sector, Mitsubishi UFJ Financial lost more than 1%, while Sumitomo Mitsui Financial and Mizuho Financial were down nearly 1% each.
Major exporters are weak, with Mitsubishi Electric and Panasonic each losing almost 2%, while Sony is down almost 3% and Canon more than 1%.
Among the other big losers, Hino Motors plunged more than 5%, while M3, Denso and NEXON lost more than 3% each.
Conversely, Inpex gains more than 4%.
In economic news, Japan’s manufacturing sector continued to expand in August, albeit at a slower pace, the latest Jibun Bank survey showed on Tuesday with a manufacturing PMI of 51.0. That’s down from 52.1 in July, although it remains above the 50 boom or bust line. The survey also showed that the services PMI fell into contraction, slipping to a score of 49.2 in August from 50.3 in July. The composite index also fell to 48.9 from 50.6 a month earlier.
In the currency market, the US dollar is trading in the lower range of 137 yen on Tuesday.
Elsewhere in Asia, New Zealand, China, Hong Kong, South Korea, Singapore, Malaysia and Taiwan are down 0.2-1.0%, while Indonesia bucks the trend and increased by 0.9%.
On Wall Street, stocks fell at the first bell on Monday and remained weak throughout the day’s session, extending losses from the previous session. The Dow Jones and the S&P 500 suffered their worst session since mid-June.
The major averages all ended noticeably lower. The Dow Jones ended down 643.13 points or 1.91% at 33,063.61. The S&P 500 fell 90.49 points or 2.14% to 4,137.99, while the Nasdaq ended a loss of 323.64 points or 2.55% to 12,381.57.
The main European markets all also moved lower on the day. Britain’s FTSE 100 ended down 0.22%, Germany’s DAX fell 2.32% and France’s CAC 40 fell 1.8%.
Crude oil prices fell on Monday on worries about the outlook for energy demand, while the strength of the dollar also weighed on oil prices. West Texas Intermediate crude oil futures for September ended down $0.54 or 0.6% at $90.23 a barrel.
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