KanawatTH
The Asia-Pacific equity markets were in red on Wednesday, tracking losses on Wall Street overnight, as technology stocks sold off and weak US manufacturing data sparked recession fears. Also, sentiment took a hit from weak China’s services activity data and Australia’s Q2 GDP miss.
Tech-heavy bourses in Japan, South Korea and Taiwan led the region lower, sliding about 3%. Chip stocks like Tokyo Electron, Advantest, SK hynix, Samsung Electronics, and Taiwan Semiconductor all nursed heavy losses.
The Japan (NKY:IND) -3.76%. The Nikkei 225 Index plunged nearly 4% to below 37,300 on Wednesday, retreating sharply from one-month highs. The Japanese yen appreciated toward 145 per dollar, rebounding sharply from two-week lows as weak US manufacturing data fueled recession fears.
The au Jibun Bank Japan Services PMI was revised lower to 53.7 in August 2024 from a preliminary estimate of 54.0. The au Jibun Bank Japan Composite PMI was at 52.9 in August 2024, compared with a flash figure of 53.0.
China (SHCOMP) -0.48%. The Shanghai Composite fell on Wednesday, with mainland stocks struggling for clear direction as sentiment took a hit from weak services activity data.
On Wednesday, a private survey indicated that China’s services sector grew at a slower pace in August 2024, falling short of expectations despite the boost from the summer travel season.
Hong Kong (HSI) -1.19%. Shares in Hong Kong slipped in early deals on Wednesday, declining for the third session.
The S&P Global Hong Kong SAR PMI fell slightly to 49.4 in August 2024 from 49.5 in July, registering the fourth consecutive monthly deterioration in business conditions.
India (SENSEX) -0.47%.
Australia (AS51) -2.03%. The S&P/ASX 200 Index dropped on Wednesday, hitting a two-week low as investors reacted to disappointing economic data. Figures showed that Australia’s economy grew 0.2% quarter-on-quarter in the three months to June, holding steady for the third straight quarter but missing market expectations of 0.3%.
A private survey also revealed that the country’s manufacturing activity remained contractionary in August, extending the sector’s deterioration to two years.
The Ai Group Australian Industry Index fell to -23.5 points in August 2024, down by 2.9 points from the previous month, marking its 28th consecutive month in contractionary territory.
Traders now awaits Reserve Bank of Australia Governor Michele Bullock’s latest comments on Thursday for fresh insights on the monetary policy path.
In the U.S., on Tuesday, all three major indexes ended lower posting their worst day since the August 5, driven by economic concerns and a significant selloff in tech stocks.
U.S. stock futures in red on Wednesday after the major averages came under heavy selling pressure in the first trading day of September, with technology stocks leading the decline: Dow -0.33%; S&P 500 -0.53%; Nasdaq -0.76%.
Investors also positioned cautiously ahead of a crucial US jobs report that could influence the size of an expected Federal Reserve rate cut this month.
Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).
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