Asian Shares Mixed As Growth Worries WeighJanuary 26, 2023
Asian stocks ended mixed on Thursday amid lingering uncertainty about the outlook for the global economy. Disappointing U.S. data released overnight and hawkish Fed comments added to the downbeat sentiment.
China’s Shanghai Composite Index rose 0.5 percent to 3,240.28 after IMF Deputy Director Gita Gopinath said China could see a strong economic recovery from the second quarter onwards. Hong Kong’s Hang Seng Index dipped 0.1 percent to 21,650.98.
Japanese shares dropped from one-month highs, as the yen regained footing on speculation that the Bank of Japan will eventually review its ultra-loose monetary policy given that inflation is at 41-year highs.
The Nikkei 225 Index dove 1.4 percent to 26,405.23 after rallying 2.5 percent in the previous session. The broader Topix closed 1 percent lower at 1,915.62 ahead of nationwide inflation data due on Friday.
Automakers led losses, with Toyota Motor, Nissan and Mitsubishi Motors tumbling 2-5 percent.
Department store operator J. Front Retailing jumped 3 percent as data showed the number of inbound tourists to Japan increased in 2022 for the first time in three years.
Seoul stocks ended higher to snap a two-day losing streak as foreign investors extended their buying streak to the seventh consecutive session. The Kospi gained 0.5 percent to close at 2,380.34. LG Chem, Samsung Electronics and KT Corp. rose 1-3 percent.
Australian stocks recovered from an early slide to end notably higher as mining giants BHP and Rio Tinto both reported solid iron ore production figures for the December quarter.
The benchmark S&P/ASX 200 Index gained 0.6 percent to close at 7,435.30, while the broader All Ordinaries Index settled 0.5 percent higher at 7,648.40.
BHP rose 1.2 percent and Rio Tinto shares soared 3.3 percent. Energy stocks succumbed to selling pressure after oil prices fell by nearly $1 in Asian trading to extend losses from the previous session on data showing a surprise jump in U.S. crude stocks.
Across the Tasman, New Zealand’s benchmark S&P/NZX 50 Index ended down 0.3 percent at 11,885.64.
U.S. stocks reversed course to end sharply lower overnight, as investors reacted to weak economic data and comments from St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester expressing support for raising rates beyond 5 percent.
Retail sales, producer prices and production at U.S. factories fell more than expected in December, rekindling concerns over the outlook for growth and corporate earnings.
The Dow plunged 1.8 percent, the tech-heavy Nasdaq Composite lost 1.2 percent and the S&P 500 shed 1.6 percent.
Source: Read Full Article