Pedestrians are reflected in the window of a securities company shows stock prices in Tokyo. Japanese stocks tumbled 1.39% at 19,471.12 points yesterday.
AFP/Tokyo
Asian markets mostly wound back yesterday, in-line with a hefty sell-off on Wall Street, after surprisingly weak US data hinted at ongoing weakness in the world’s number one economy.
The euro broke above $1.10, boosted by receding expectations of an early US rate hike and upbeat indicators out of the eurozone.
Oil prices also enjoyed support from concerns about unrest in the crude-rich Middle East following news that Saudi jets had struck rebel positions in neighbouring Yemen.
Tokyo tumbled 1.39%, or 275.08 points, to 19,471.12 after touching a 15-year high this week, while Sydney sank 1.58%, or 94.22 points, to close at 5,879.1 and Seoul fell 0.99%, or 20.25 points, to 2,022.56.
Hong Kong lost 0.13%, dropping 31.15 points to 24,497.08, but Shanghai gained 0.58%, or 21.37 points, to 3,682.10, having fallen Wednesday for the first time in 11 sessions.
In other markets, Taipei fell 0.50%, or 48.71 points, to 9,619.12; Taiwan Semiconductor Manufacturing Co shed 3.64% to Tw$145.5 while smartphone maker HTC was 0.35% lower at Tw$140.5.
Wellington slipped 0.42%, or 24.61 points, to 5,833.17; Air New Zealand was off 1.82% at NZ$2.70 and telecom giant Spark slipped 0.17% to NZ$2.97.
Manila closed 0.44% higher, adding 34.76 points to 7,871.10; Metropolitan Bank added 0.62% to 97.60 pesos, SM Investments put on 0.06% to 888.50 pesos and SM Prime Holdings fell 1.49% to 19.90 pesos.
Kuala Lumpur was flat, dipping 0.68 points to end at 1,818.42; SapuraKencana Petroleum was among the top gainers, adding 3.45% to 2.40 ringgit. Cable television leader Astro Malaysia Holdings lost 1.55% to 3.18 ringgit and Petronas Chemicals Group fell 1.27% to 5.43 ringgit.
Singapore rose 0.37%, or 12.57 points, to 3,431.59; oil rig maker Keppel Corp jumped 1.23% to Sg$9.05 and property developer Capitaland advanced 1.97% to Sg$3.62.
Jakarta ended down 0.68%, or 36.69 points, at 5,368.80; mobile phone provider Indosat gained 1.07% to 4,265 rupiah, while cigarette maker Gudang Garam slipped 3.22% to 48,100 rupiah.
Bangkok dropped 1.08%, or 16.39 points, to 1,496.41; Bumrungrad Hospital slid 3.28% to 147.50 baht, while Charoen Pokphand Foods was flat at 21.40 baht.
US investors ran for the sidelines Wednesday after the Commerce Department said durable goods orders fell in February after January’s gain.
While the news will likely put back the Federal Reserve’s timeline on when to raise interest rates, it was taken Wednesday by investors as a sign of weakness, fuelling fears about the global outlook. The Nasdaq fell 2.37%, the Dow tumbled 1.62% and the S&P 500 gave up 1.46%.
“Wall Street is struggling to add to its recent record high and it looks like the upward momentum is starting to show signs of fatigue,” Matthew Sherwood, head of investment markets research in Sydney at Perpetual Ltd, told Bloomberg News.
“Asia has an advantage over the US as Asia has cheaper valuations. What’s weighing on Asia is the performance of the Chinese economy, which is facing some growth roadblocks.”
Banking giant HSBC this week revealed its preliminary gauge of Chinese manufacturing activity had hit an 11-month low, indicating it was in contraction. That comes after a string of releases showing the Asian economic giant struggling.
The dollar—suffering recent losses after the Fed dampened talk of an early summer rate rise—came under further pressure after the latest figures.
In Tokyo it bought ¥118.66, compared with ¥119.43 in New York and well off the ¥119.62 in Tokyo earlier Wednesday.
The euro bought $1.1011 and ¥130.65 against $1.0973 and ¥131.05.
The single currency has bounced against the dollar since slumping below $1.05 last week, before the Fed announcement.
The euro was boosted by a closely watched Ifo economic institute index on business confidence in Europe’s biggest economy Germany, which rose to 107.9 in March, the highest level since July 2014.
Another report showed eurozone business activity near a four-year high in March.
Oil extended gains in Asia as investors eye events in Yemen, where Saudi Arabia carried out strikes against Huthi rebels as part of a regional coalition in a bid to save the government of President Abd-Rabbo Mansour Hadi and prevent civil war.
US benchmark West Texas Intermediate surged $2.63 to $51.84 while Brent rose $2.83 to $59.31 in afternoon trade.
WTI advanced $1.70 and Brent gained $1.37 Wednesday on news Hadi was rushed to a “secure location” after his presidential complex was attacked.
Gold fetched $1,205.54 against $1,195.51 late Wednesday.
